Final answer:
The largest element of the Canadian money supply today is C) Bank deposits, which include checkable or demand deposits in checking accounts, far exceeding the values circulated as coins and currency.
Step-by-step explanation:
In reference to your question about the largest element of the Canadian money supply today, the correct answer is C) Bank deposits.
The M1 money supply includes coins and currency in circulation, but these are not the largest components. Instead, checkable deposits, also known as demand deposits, which are held in checking accounts, represent a much larger proportion. Moreover, the M2 money supply, which is broader than M1, includes M1 plus savings accounts, time deposits, certificates of deposits, and money market funds. However, bank deposits still make up the largest part of the total money supply in modern economies like Canada's. Gold and the debt of the federal government are not considered part of the money supply in this context.