Credit cards are
i. a generally accepted form of payment and therefore part of M1.
ii. included in M1 because you write a cheque to pay your monthly bill.
iii. a means of borrowing money.
A) i only
B) ii only
C) iii only
D) i and iii
E) i and ii

Question

Quizplus · Accepted Answer

Credit cards are a means of borrowing money; they are not part of M1 because M1 includes only the most liquid forms of money, such as cash and checking deposits, not credit.

Credit Cards Are I. a Generally Accepted Form of Payment and Therefore Part