Which of the Following Is Correct Regarding Credit Cards

question 160

Short Answer

Which of the following is correct regarding credit cards?
They are a store of value.
They are not a money substitute.
They are a permanent medium of exchange.
They are becoming more important but are still not a major factor in the purchase of consumer goods.
They are often referred to as "plastic money."

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Definitions:

APC

In economics, stands for Average Propensity to Consume, which is the ratio of total consumption to total disposable income.

APC

Average Propensity to Consume, which is the fraction of income that households spend on consumption as opposed to saving.

APS

Stands for Average Propensity to Save, which measures the proportion of income that households save rather than spend on goods and services.

Autonomous Consumption

The level of consumption that occurs when income is zero, representing the consuming behavior independent of current income.