Checks and Credit Cards Are NOT Considered Money Because They

question 205

Multiple Choice

Checks and credit cards are NOT considered money because they

• A) are issued by banks, not the Federal Reserve.
• B) are not the means of payment.
• C) typically require an identification check, such as your driver's license.
• D) are not backed by all commercial banks.

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Definitions:

Direct Deposits

Direct Deposits involve the electronic transfer of a payment directly from the account of the payer to the recipient's account, commonly used for payroll or benefit disbursements.

Float Time

The period between when a bank check is written and when it is actually withdrawn from the payer's account, typically used to advantage cash flow.

Unauthorized Payment

A transaction made without the consent or authorization of the account holder.

Bank Statement

A document issued by a bank detailing transactions, balances, and other financial information over a period of time for a specific account.