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Why Are Demand Deposits (Chequing Accounts)classified as Money

Question 27

Multiple Choice

Why are demand deposits (chequing accounts) classified as money?


A) Because they can be readily used in making purchases and for the payment of debts.
B) Because they earn interest income for the depositor.
C) Because they are ultimately the obligations of the government.
D) Because banks hold currency equal to the value of their outstanding deposits.
E) Because they are insured by the Canadian Deposit Insurance Company.

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