Credit cards are

a. included in the m2 definition of the money supply, but not in the m1 definition.

b. included in neither the m1 definition of the money supply nor in the m2 definition.

c. included in both the m1 and the m2 definitions of the money supply.

d. included in the m1 definition of the money supply, but not in the m2 definition.

Question

Business

Alonso Nash

8 June, 00:10

Credit cards are

a. included in the m2 definition of the money supply, but not in the m1 definition.

b. included in neither the m1 definition of the money supply nor in the m2 definition.

c. included in both the m1 and the m2 definitions of the money supply.

d. included in the m1 definition of the money supply, but not in the m2 definition.

+3

Answers (1)

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Devon Austin · Answer 1

Credit cards are included in neither the M1 definition of the money supply nor in the M2 definition. Credit cards do not come under these definition because M1 and M2 by definition deals with deposits, saving accounts tiny deposits and assets conversion and cash in the money supply sector. Hence the concept of credit cards is not covered in M1 and M2.