Answer True or False, and Explain

question 95

Essay

Answer true or false, and explain.
(A)Although credit cards are not included in the money supply, credit cards linked to your checking account are included in the money supply because of the link to your checking deposits.
(B)Although credit cards are not included in the money supply, the checks the credit card company sends you are included in the money supply, for the same reason that checking deposits are included in the money supply.

---

Definitions:

Homogeneous Product

A homogeneous product is one that is seen as identical or nearly identical in quality, appearance, and function, regardless of its manufacturing source, making it difficult for consumers to distinguish between different brands or suppliers.

Pure Competition

A market structure characterized by an extremely large number of sellers and buyers, homogeneous products, and easy entry and exit from the market.

Market Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers over a period of time.

Nonprice Competition

A marketing strategy where companies differentiate their products or services based on attributes other than price, such as quality, design, or brand reputation.