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Demand Deposits Are Classified as Money Because

Question 3

Multiple Choice

Demand deposits are classified as money because:


A) they can be readily used in the making of purchases and payment of debts
B) banks hold currency equal to the value of their outstanding deposits
C) they are ultimately the obligation of the government
D) they earn significant interest income for the depositor
E) banks hold stocks equal to the value of their outstanding deposits

Correct Answer:

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