The transactions approach to measuring money includes
A) government bonds.
B) the value of shares of stock in commercial banks.
C) traveler's checks.
D) all of these.

Question

Quizplus · Accepted Answer

The transactions approach to measuring money focuses on money's role as a medium of exchange. It includes all forms of money that can be directly used for transactions. Traveler's checks, along with currency and demand deposits, are directly usable for transactions, unlike government bonds or shares of stock, which are considered investments.

The Transactions Approach to Measuring Money Includes