Are Outstanding Credit Card Balances Counted as Part of the Money

question 105

Multiple Choice

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

• A)Yes;they are used to purchase things,and therefore,they are included in the money supply figures.
• B)No;money is an asset,while the credit card balances are a liability.Thus,they are not included in the money supply figures.
• C)Partly;credit card balances of $100 or less are included in the M1 money supply,but the money supply figures do not include balances in excess of $100.
• D)Partly;credit card balances are included in the M1 money supply,but not the M2 money supply.

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Definitions:

Lifetime Learning Credit

A tax credit available for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution, aimed at promoting lifelong learning.

Qualifying Expenses

Specific expenditures that meet the criteria for tax deductions or credits, reducing taxable income.

Community College

A two-year public institution providing higher education and vocational training, often serving as a bridge to four-year universities.

AGI Limitations

Thresholds based on Adjusted Gross Income that limit eligibility for certain tax deductions and credits.