Credit cards:
A) are part of the M1 money supply.
B) are part of the M2 money supply.
C) are part of both the M1 and M2 money supply.
D) do not affect the money supply.

Question

Quizplus · Accepted Answer

Credit cards represent a line of credit or a loan from the issuing institution to the cardholder, rather than a form of money. They do not constitute money themselves and thus do not directly affect the measures of the money supply (M1 or M2).

Credit Cards