Why are checks and credit cards not money?
What will be an ideal response?
Checks and credit cards are not money because they are not a means of payment. A check is an order to transfer a deposit from one person to another. The deposits are money but the checks are not. A credit card is an ID card that lets a person take out a loan at the instant he or she buys something. The loan still needs to be repaid with money so the credit card is not a means of payment, that is, it is not money.
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The Celler-Kefauver Act strengthened the nation's antitrust approach to merger enforcement by:
a. making all mergers illegal. b. making all conglomerate mergers illegal. c. creating the Federal Trade Commission. d. providing HHI guidelines the government could use to clarify antitrust enforcement. e. amending the Clayton Act to include the purchase of assets with cash of another company as a potential antitrust violation.
China has experienced particularly high rates of economic growth as a result of
A. High rates of government spending. B. High rates of capital investment. C. High rates of consumer spending. D. Low rates of saving.
If workers received a 5 percent wage increase and the rate of inflation was 5 percent, then their real wage:
A. remained constant. B. equaled the nominal wage. C. increased. D. decreased.
Suppose the economy's multiplier is 2. Other things equal, a $25 billion decrease in government expenditures on national defense will cause equilibrium GDP to:
A. decrease by $50 billion. B. decrease by $150 billion. C. remain unchanged since spending on military goods is unproductive and usually wasteful. D. decrease by $25 billion.