Are outstanding credit card balances counted as part of the money supply?

A. Yes; they are used to purchase things, and therefore, they are included in the money supply figures.
B. No; money is an asset, while the credit card balances are a liability. Thus, they are not included in the money supply figures.
C. Partly; credit card balances of $100 or less are included in the M1 money supply, but the money supply figures do not include balances in excess of $100.
D. Partly; credit card balances are included in the M1 money supply, but not the M2 money supply.


Answer: B

Economics

You might also like to view...

Takeovers and takeover attempts waste valuable capital

a. True b. False Indicate whether the statement is true or false

Economics

Which would have no effect on the demand for motorcycles?

a. A change in tastes b. A change in the cost of steel c. A change in the price of gas d. A change in the prices of cars

Economics

What is the significance of the slope on a two-product budget line? What effect does a change in income have on the slope? A change in product price?

Please provide the best answer for the statement.

Economics

A non-discriminating pure monopolist is generally viewed as:

A. Productively efficient, but allocatively inefficient B. Productively inefficient, but allocatively efficient C. Both productively and allocatively inefficient D. Both productively and allocatively efficient

Economics