Which of the Following Is Not True About the Use

question 32

Multiple Choice

Which of the following is not true about the use of a credit card?

• A)It is a means of deferring payment for a short period of time.
• B)It allows people to "economize" on the use of money.
• C)Credit card balances are part of M2 but not part of M1.
• D)A credit card transaction is not the same as a debit card transaction.

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Definitions:

Federal Income Tax

The tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Form 941

A tax form filed by employers in the United States to report withholding taxes, Social Security, and Medicare taxes.

Social Security

A government program that provides financial assistance to people with an inadequate or no income.

Medicare Taxes

Federal taxes collected from earnings to fund the Medicare program, which provides healthcare benefits to senior citizens.