Which of the Following Statements Is Correct

question 287

Multiple Choice

Which of the following statements is correct?

• A) Credit cards are important for our system of payments,but they are not important for analyzing the monetary system.
• B) Account balances that lie behind debit cards are included in M1 and in M2.
• C) People who have credit cards probably hold more money on average than people who do not have credit cards.
• D) A debit card is more similar to a credit card than to a check.

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Definitions:

Natural Monopolies

A market condition where due to high infrastructure costs or significant barriers to entry, a single company can supply a product or service more efficiently than multiple competing firms.

Government Regulation

The establishment of rules and laws by government bodies that are intended to control or govern conduct and practices within various sectors.

Price Discrimination

A pricing approach in which the same provider sells the same or nearly the same products or services for different prices in distinct markets or to various customers.