When banks offer checking accounts, they are issuing a(n):
A. financial asset that cannot function as money.
B. financial liability.
C. financial asset that functions as money.
D. IOU.
Answer: C
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Many East Asian currencies during the 1990s were
a. allowed to float freely b. pegged to the Japanese yen c. pegged to the U.S. dollar d. pegged to gold e. none of the above
Refer to the graphs below. In Graph A, a decrease in the price level from P1 to P3 will lead to:
In the graphs below, QP refers to the economy's potential output level.
A. A decrease in profits, an increase in real output, and a decrease in the unemployment rate
B. A decrease in profits, a decrease in real output, and a decrease in the unemployment rate
C. A decrease in profits, a decrease in real output, and an increase in the unemployment rate
D. An increase in profits, an increase in real output, and a decrease in the unemployment rate