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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