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Savings deposits are described as bank accounts on which you cannot:
AClose the account
BWrite a check on
CDeposit any money
DEarn any interest
Answer & Solution
Correct answer: B. Write a check on
1. Savings deposits sit in M2 rather than M1 for a reason.
2. M2 includes savings deposits in banks.
3. These are bank accounts on which you cannot write a check directly.
4. You can still withdraw the money easily at a machine or bank.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 13 'Money and Banking'_
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