Are Outstanding Credit Card Balances Counted as Part of the Money

question 183

Multiple Choice

Are outstanding credit card balances counted as part of the money supply?

• A) No; credit card balances reflect funds that have been borrowed. Unlike money, they cannot be used as a means of payment.
• B) Yes; they are used to purchase things and therefore they are included in the money supply figures.
• C) They are included in the M1 money supply, but not the M2 figures.
• D) They are included in the M2 money supply, but not the M1 figures.

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