"Credit cards are considered money because they serve to purchase goods and services." Is the previous statement true or false?
What will be an ideal response?
The statement is false. Credit cards are an ID card that, when presented, allow the owner to get an immediate loan. A loan is not money because a loan needs to be repaid with money. Thus a credit card is not money.
You might also like to view...
An increase in the rate of economic growth curve could be caused by all of the following except
A. a national tax that encourages all employers to provide more training and education for employees which leads to an across-the-board upgrade of the skill level of the nation's workforce. B. a movement along the production possibilities curve so that the society produces more consumer goods and less capital goods. C. an increase in immigration that increases the country's labor force by 20 percent. D. an increase in research and development spending for space technology that improves the quality of the nation's capital stock.
The opportunity cost of holding excess reserves is equal to
A) the federal funds rate. B) the federal funds rate minus the discount rate. C) the discount rate. D) none of the above.
If you buy a DVD player produced in Japan, a
A) good was exported by Japan and imported by the United States. B) good was imported by Japan and by the United States. C) service was imported by Japan and exported by the United States. D) service was exported by Japan and imported by the United States. E) good was exported by Japan and by the United States.
A tax cut will unambiguously lower income-tax revenue
Indicate whether the statement is true or false