PART B: Which quote from the text best supports the answer to Part A?A. "a checking account holds your money and allows you to access it very easily at any time you would like." (Paragraph 3)B. "Money in a savings account is harder to access on demand, but the bank will pay you a small percentage of the total for keeping your money in that account." (Paragraph 4)C. "If you put $1,000 into a savings account, the bank will hold onto a small portion of it, maybe $100, and give the other $900 out to other customers as loans." (Paragraph 5)D. "Banks like to give out loans because when someone borrows money, they have to pay that money back along with interest on the money" (Paragraph 7)

If households in the economy decide to take money out of checking account deposits and put this money into savings accounts, this will initiallyQuestion 5Answera.decrease M1 and decrease M2.b.increase M1 and decrease M2.c.decrease M1 and not change M2.d.decrease M1 and increase M2.

The percentage of commercial banks' checking and savings accounts that must be kept in the bank is referred to as Blank______.Multiple choice question.demand depositsthe reserve requirementthe banker's acceptancethe money supply

8. Because checking accounts are liquid for the depositor than savings accounts, they earn interest rates. A) less; higher B) less; lower C) more; higher D) more; lower

Which type of account pays more interest than a savings account but requires you to leave your money untouched for a period of time?A.Money market accountB.Flexible spending accountC.Checking accountD.Certificate of depositSUBMITarrow_backPREVIOUS

Multiple Choice QuestionWhich statement accurately describes a money market account?Multiple choice question.Also known as time deposit, fixed interest rate over a specified period of timeInterest bearing, more restrictions than traditional checking account, only a limited number of checks per monthInterest bearing, also called a demand deposit, funds cannot be withdrawn with prior noticeSavings account, guarantees set interest rate, fixed interval of time