In Defining the Money Supply (M1), Economists Exclude Savings Deposits

Multiple Choice

In defining the money supply (M1) , economists exclude savings deposits because

A) the purchasing power of savings deposits is much less stable than that of checkable deposits and currency.
B) savings deposits are a form of investment and, thus, a better store of value than money.
C) savings deposits are liabilities of commercial banks, whereas checkable deposits are assets of the banks.
D) savings deposits are not generally used as a means of payment.