Credit cards are
A) a part of money because they are used in so many transactions.
B) a part of money when the transaction approach is used but not when the liquidity approach is used.
C) not part of money because they represent a loan of money to the user.
D) not part of money because the government has no control over the amount of credit outstanding.

Question

Quizplus · Accepted Answer

Credit cards are not considered part of the money supply because they represent a short-term loan from the credit card issuer to the cardholder, rather than a store of value or a medium of exchange themselves.

Credit Cards Are