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 neither M1 nor M2.
C) People who have credit cards probably hold less money on average than people who do not have credit cards.
D) A debit card allows its user to postpone payment for a purchase.

Question

Quizplus · Accepted Answer

People who have credit cards often use them to make purchases instead of using cash, and therefore they might carry less cash on average. However, credit card balances are a form of debt and are included in measures of the money supply, such as M2. Choices A, B, and D are not correct statements.

Which of the Following Statements Is Correct