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:

Market Rate

The prevailing interest rate available in the marketplace for loans or investments of a similar risk and maturity.

Maturity

The point at which a financial instrument, investment, or policy reaches the end of its term and is due to be repaid or terminated.

Price

The amount of money expected, required, or given in payment for something.

Population

The total number of inhabitants of a particular town, area, or country.