Why are credit cards excluded from the measure of the nation's money supply?
A) Because debt continues to accrue as the credit card is used
B) Because money is not moved until the debt is paid
C) Because there are few spending controls on credit cards
D) Because credit cards represent a convenience, not a service
E) Because only the interest paid on the credit card is considered liquid money
Answer: B
Explanation: B) Spending with a credit card creates a debt, but does not move money until later when the debt is paid by cash or check. Debit card transactions, in contrast, transfer money immediately from the consumer's bank account, so they affect the money supply the same way as spending with a check or cash and are included in M-1.
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Evaluate the following projects using the payback method assuming a rule of 3 years for payback
Year Project A Project B 0 -10,000 -10,000 1 4,000 4,000 2 4,000 3,000 3 4,000 2,000 4 0 1,000,000 A) Project A can be accepted because the payback period is 2.5 years but Project B cannot be accepted because it's payback period is longer than 3 years. B) Project B should be accepted because even though the payback period is 2.5 years for Project A and 3.001 for project B, there is a $1,000,000 payoff in the 4th year in Project B. C) Project B should be accepted because you get more money paid back in the long run. D) Both projects can be accepted because the payback is less than 3 years.
In sentiment analysis, sentiment suggests a transient, temporary opinion reflective of one's feelings
Indicate whether the statement is true or false