1)If the transactions approach to measuring money is used, then the money supply consists of
a. transaction deposits only.
b. currency, checkable and debitable deposits, and traveler's checks.
c. currency and transaction deposits only.
d. currency only.
2)Transaction deposits
a. are deposits in a thrift institution or a commercial bank on which a check may be written.
b. include savings accounts.
c. are accounts that pay interest to the depositor.
d. are only deposits that you can check on through the Internet.
is 1 b
2 b
is it because i want to make sure if its right???
To determine the correct answer to each of these questions, we can analyze the given options and consider the definitions and characteristics of the terms mentioned.
1) When using the transactions approach to measuring money, the money supply consists of:
a. transaction deposits only.
b. currency, checkable and debitable deposits, and traveler's checks.
c. currency and transaction deposits only.
d. currency only.
The transactions approach to measuring money includes all assets that can be used directly to make payments and fulfill transactions. Based on this definition, the correct answer would be option b. This is because currency, checkable and debitable deposits (also known as demand deposits), and traveler's checks are considered transactional assets that can be used to facilitate payments.
2) Transaction deposits are:
a. deposits in a thrift institution or a commercial bank on which a check may be written.
b. included in savings accounts.
c. accounts that pay interest to the depositor.
d. only deposits that you can check on through the Internet.
Transaction deposits are deposits in a thrift institution or a commercial bank on which a check may be written. This implies that they are accounts designed for transactions, allowing the account holder to write checks against the deposited funds. Therefore, the correct answer would be option a.