Why Are Debit Cards Not Listed as Money

question 134

Multiple Choice

Why are debit cards not listed as money?

• A) Because they perform the same function as checks, and checks are counted as money.
• B) Debit cards cannot be used for payments at most stores.
• C) Debit cards draw on checkable deposits, which are already counted as money.
• D) Not all banks issue debit cards.

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Definitions:

Demand Determined

Refers to situations where the quantity of a good or service produced is directly influenced by consumer demand.

Government-imposed Maximum Price

A legally set ceiling on the price at which a good or service can be sold, typically to protect consumers from excessively high prices.

Economic Impact

The effect of an event, policy, or market condition on the economy, which can be observed in changes to GDP, employment, or investment.

Price Floor

A government-imposed limit on how low a price can be charged for a product, typically above the equilibrium price to help producers.