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

Question

Quizplus · Accepted Answer

When Dale uses a credit card to buy a computer, he is essentially borrowing $1,000 from the credit card company, which he will need to pay back later, often with interest.

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