A checking account balance in a commercial bank is

Question

Quizplus · Accepted Answer

A checking account balance in a commercial bank is considered a form of money because it can be readily used for most transactions, making it a liquid asset. Therefore, choice D is the best option. Choice A is incorrect because while it might contribute to the overall money supply, an individual checking account balance is not considered part of the physical currency supply. Choice B is incorrect because time deposits are savings accounts that are not liquid and cannot be used for transactions in the same way as checking accounts. Choice C is also incorrect because as mentioned, checking accounts are considered liquid assets and are therefore a type of money.

A Checking Account Balance in a Commercial Bank Is