All of these are classified as "near monies" rather than money for the reasons specified EXCEPT
A) savings deposits, because savings cannot be spent. It must be transferred into cash or checking to be spent.
B) money market deposit accounts, because, while checks can be written, there are restrictions, such as limits on the number of withdrawals per month, that keep them from serving daily needs as a medium of exchange.
C) small-denomination time deposits, because they cannot be used as a medium of exchange and carry penalties for early liquidation.
D) credit cards, because they do not provide a store of value.

Question

Quizplus · Accepted Answer

Credit cards are not classified as "near monies" because they do provide a store of value. Although credit cards are not a physical form of currency, they allow for deferred payment and can be used as a means of payment for goods and services, which makes them a form of near money.

All of These Are Classified as "Near Monies" Rather Than