Credit cards are
A) a part of M1 but not of M2.
B) a part of M2 but not a part of M1.
C) not a part of money because they are not a means of payment.
D) a part of money because they are used to purchase goods and services.

Question

Quizplus · Accepted Answer

Credit cards are not considered part of the money supply (M1 or M2) because they represent a line of credit rather than actual money. They are a means of deferring payment rather than a means of payment themselves.

Credit Cards Are