A check is money as it can be used as money. M-1A is defined as currency and demand deposits. NOW account is short for Negotiated Order of Withdrawal. This is an interest bearing transaction account such as a checking account. Congress first authorized NOW accounts in the Depository Institutions and Monetary Control Act of 1980.
Banks are one of the most regulated industries in the United States.
The reason for this is the tremendous impact the banking industry has on the economy by their ability to create money through the multiplier effect of lending. This is the concept of the multiplier effect of lending. The multiplier effect can be determined by dividing 1 by the reserve requirement and then multiplying that result by the deposit amount. The Federal Reserve System regulates member banks. Regulation A establishes the conditions by which Federal Reserve Banks may extend credit to member banks.