DSST Money And Banking Practice Questions - Money And Banking Exam

Why are checking deposits usually considered money while corporate bonds usually are not?

Checking deposits can be spent directly, while corporate bonds generally must be sold or redeemed before being used for payment. Checking deposits always pay higher interest than bonds. Corporate bonds are issued only by the Federal Reserve. Checking deposits are never liabilities of banks.

Correct Answer:

Checking deposits can be spent directly, while corporate bonds generally must be sold or redeemed before being used for payment.

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