6 Questions
How do credit cards differ from measures of the quantity of money?
Credit cards are not considered a method of payment, but a way to defer payment
What is the key difference between credit cards and debit cards in terms of how they fit into the monetary system?
Debit cards automatically withdraw funds from a bank account, while credit cards require a separate payment process
How are debit card transactions accounted for in measures of the money supply?
Debit card transactions are included in measures of the money supply as they represent an immediate withdrawal from a bank account
Why are credit cards not considered a form of money in the monetary system?
All of the above
How do credit card transactions differ from writing a check in terms of the monetary system?
Credit card transactions represent a deferred payment, while check transactions represent an immediate withdrawal from a bank account
What is the key reason why credit cards are not considered a form of money in measures of the money supply?
Credit card transactions represent a deferred payment, not an immediate exchange of money
Explore how credit and debit cards contribute to the monetary system by facilitating purchases. Learn why credit cards are not considered in measures of the quantity of money despite their widespread use.
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