Question : 51) A credit card A) money. B) barter money. C) not money. D) : 1238076

51) A credit card is

A) money.

B) barter money.

C) not money.

D) fiat money.

E) not money, but the card’s credit line is money.

52) Credit cards are

A) a form of money used to make purchases.

B) a special ID card that is not money.

C) a special ID card that is the same as money.

D) a form of money that is not generally accepted.

E) included in the M1 measure of money.

53) When you use a credit card to pay your tuition,

A) you’ve used the credit card as money because it is a means of payment.

B) the credit card is not money but is an ID card for an instant loan.

C) the credit card is not money because it involves an electronic transaction.

D) the credit card is not money because it is not officially issued by the government.

E) you’ve used the credit card as money because you received something in return.

54) Credit cards are

i.a generally accepted form of payment and therefore part of M1.

ii.included in M1 because you write a check to pay your monthly bill.

iii.a means of borrowing money.

A) i only

B) ii only

C) iii only

D) i and ii

E) i and iii

55) 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.

56) Debit cards and e-checks are not money because

A) they can be forged easily.

B) they can fail their purpose of being mediums of exchange as a result of technical difficulties.

C) they are just instruments to transfer money between people.

D) not all banks offer them and not all businesses accept them.

E) they are not regulated by the government.

57) A debit card is

A) money because it is a means of payment.

B) not money but is used to transfer bank deposits which are money.

C) money because it is generally accepted as a means of payment.

D) not money because it is not officially issued by the government.

E) part of the M2 money supply but not part of the M1 money supply.

58) Which of the following are considered money?

i.electronic checks

ii.paper checks

iii.the deposit transferred using an e-check

A) i, ii and iii

B) i and iii

C) i and ii

D) iii only

E) ii and iii

59) An official measure of money in the United States is M1, which includes the sum of

A) checkable deposits plus small time deposits.

B) currency plus checkable deposits.

C) currency plus credit card transactions.

D) currency plus traveler’s checks plus time deposits.

E) currency plus traveler’s checks plus checkable deposits plus small time deposits plus money market funds and other deposits.

60) M1 is composed of

A) currency held by individuals and businesses, traveler’s checks, and checkable deposits owned by individuals and businesses.

B) checkable deposits owned by individuals and businesses, saving deposits, and certificates of deposit.

C) currency inside of banks, traveler’s checks, and government-issued checks.

D) traveler’s checks, credit cards, and e-cash.

E) currency held by individuals and businesses, traveler’s checks, and the credit line on credit cards.