Author Question: Are credit cards or debit cards money? Explain your answer. What will be an ideal ... (Read 308 times)

Yi-Chen · **on:** Jun 29, 2018

Are credit cards or debit cards money? Explain your answer.

What will be an ideal response?

Question 2

Let's assume Ben can produce 3 units of a material good (M) or 3 units of a spiritual good (S) in a day, while Cal can produce 1 M or 2 Ss in a day. Both Ben and Cal can potentially produce a larger combination of M and S

A) if Ben specializes in S and Cal in M and they exchange with one another.
B) if Ben specializes in M and Cal in S and they exchange with one another.
C) if Ben specializes in both goods and doesn't exchange with Cal.
D) only if Cal finds a way to also produce 3 M and 3 S per day.

ashely1112 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Neither credit cards nor debit cards are money. Credit cards are a type of ID card that, when presented, allow the owner to get an immediate loan. The loan is not money; indeed, it must be repaid using money. A debit card allows the customer to pay immediately for his or her purchase by transferring money from the customer's checking account to the seller's account. Debit cards are similar to checks insofar as they are essentially instructions to move money from one person to another. The funds transferred are money, the debit card is not money.

Answer to Question 2

B