A credit card purchase is not money but a:
ACash reserve
BShort term loan
CDemand deposit
DSavings deposit
Answer & Solution
Correct answer: B. Short term loan
1. The card company pays the seller.
2. You borrow until you pay the bill.
3. More cards do not add money to the economy.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 13, Money and Banking (CC BY 4.0)._
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