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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Screening and monitoring are costly activities. Why is it a bad idea to impose these costs on borrowers?
What will be an ideal response?
During the 1950s and 1960s, the national debt as a percent of GDP in the United States
a. soared to an all-time high. b. declined. c. increased. d. was virtually unchanged.