When Dale buys a new computer for $1,000 using a credit card,
A)the credit card is performing the function of a unit of account.
B)he is taking out a loan for $1,000.
C)his bank account decreases by $1,000.
D)the money supply decreases by $1,000.
E)the credit card is acting as money.

Question

Quizplus · Accepted Answer

When Dale buys a new computer using a credit card, he is essentially taking out a loan for $1,000. He will have to pay back the credit card company with interest over time.

When Dale Buys a New Computer for $1,000 Using a Credit