"Since checking accounts now pay interest they should not be included in the money supply." Given that checks are the major medium of exchange,this statement is false because
A)checking accounts are primarily used for savings in the current year.
B)the interest rate on checking accounts is lower than on other accounts.
C)the demand for real balances is negatively related to interest rates.
D)money is money.

Question

Quizplus · Accepted Answer

The Answer of "Since checking accounts now pay interest they should not be included in the money supply." Given that checks are the major medium of exchange,this statement is false because
A)checking accounts are primarily used for savings in the current year.
B)the interest rate on checking accounts is lower than on other accounts.
C)the demand for real balances is negatively related to interest rates.
D)money is money.

"Since Checking Accounts Now Pay Interest They Should Not Be