Final answer:
The correct option to verify the checking account balance is B) Bank Statement Reconciliation. The items listed fall under M1, M2, or neither based on their liquidity and readiness for transactions, with a line of credit being neither and checking accounts being part of M1.
Step-by-step explanation:
The selection used to verify the checking account balance is B) Bank Statement Reconciliation. When you reconcile your bank statement, you are comparing your internal financial records against the records provided by the bank to ensure that they match and that your checking account balance is correct. This process helps identify any discrepancies due to errors or unauthorized transactions.
M1, M2, or Neither
a. Line of credit - Neither: It's a borrowing limit, not actual money in circulation.
b. Traveler's checks - M1: They are considered a type of check that can be readily used for transactions.
c. Quarters in your pocket - M1: Physical currency in your possession is a part of the money supply that can immediately be used for transactions.
d. Checking account - M1: Funds in a checking account are liquid and can be used readily for transactions.
- e. Money market account - M2: While it's still liquid, it's not as readily accessible as the funds in a checking account, hence it's categorized under M2.