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
You might also like to view...
Deadweight loss is
A) the amount of taxes that consumers and monopolists pay. B) the loss of output when a perfectly competitive firm becomes a monopolist. C) a loss of benefit to consumers in a monopoly that no one else in society can obtain. D) the price that consumers pay for a product in excess of the average cost of producing it.
Using the above figure, if the government levies a new unit tax in this market, S represents the original supply curve, and St represents the after-tax supply curve, then the revenues that the government collects from imposing this tax is represented on this graph by
A. BAEC. B. OAEG. C. CEF. D. OBCG.