Credit cards are considered:
A)part of M1.
B)part of M3.
C)broad money.
D)not part of the money supply.

Question

Quizplus · Accepted Answer

Credit cards are not part of the money supply because they do not represent actual money, but rather a promise to pay back the funds used for a purchase. Credit cards can be used to access money in bank accounts (which is part of the money supply), but the credit card itself is not considered part of the money supply.

Credit Cards Are Considered