a confuse question about ap macro eco need answear as soon as possible

Test Preparation AP Test Preparation
1

<p>Which of the following constitutes the largest component of the United States money supply (M1)?
Answer
A. Silver certificates
B. Checkable deposits (demand deposits)
C. Currency (paper money)
D. Coins
E. Large certificates of deposit</p>

<p>college board answer
This question is a definition. The largest component of M1 is checkable deposits (demand deposits).</p>

<p>Therefore, the correct answer is choice B. </p>

<p>From my book it said the largest is currency</p>

<p>Which one is right ?</p>

2

<p>Obviously currency. What do people carry around more, checkable deposits or Benjamin Franklins? xD</p>

3

<p>No, the answer is checking deposits. 80% of all spending in the US economy is done through checking accounts.</p>

4

<p>Is this question from PR or Barrons?
Yeah, should be checking deposits unless your book words the question differently then.</p>

5

<p>What is a checkable deposit?</p>

6

<p>like checking accounts I assume.</p>

7

<p>It is definitely checkable deposits. Majority of the money is NOT printed on paper or in coin form but in bank accounts.</p>