Transactions accounts in commercial banks and other financial institutions are classified as money because

Question

Quizplus · Accepted Answer

Transactions accounts, such as demand deposits, are considered money because they can be used to make purchases or pay debts. They are generally accepted as a medium of exchange, making them a form of currency. The fact that they may or may not earn interest for depositors or require the bank to hold currency in their vaults does not affect their classification as money.

Transactions Accounts in Commercial Banks and Other Financial Institutions Are