Credit Cards Are

question 10

Multiple Choice

Credit cards are

• A) a part of money when the transaction approach is used but not when the liquidity approach is used.
• B) a part of money because they are used in so many transactions.
• 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.

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Definitions:

Market Security

A financial instrument such as stocks, bonds, or any tradable financial asset that is bought and sold in a financial market.

T-Bill

Short-term debt obligations issued by the U.S. Treasury with maturities of one year or less, serving as a low-risk investment.

Maturity

The date on which the principal amount of a financial instrument becomes due and is repaid to the investor.

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate, representing the amount to be returned to the holder at maturity.