Question 47
Money and InflationCheques can be used in place of money mainly because they are
- A.backed by deposits in current accounts
- B.standard for deferred payments
- C.issued by commercial banks
- D.generally acceptable and homogeneous
Show the answer and explanation
Answer: A (backed by deposits in current accounts)
Explanation
A cheque is accepted because there is money in the drawer's current account to pay it.