The "money" portion is an erroneous reference to credit cards as a form of money, which they are not. Although credit cards do facilitate transactions, because they are a liability rather than an asset, they are not money and not part of the economy's money supply.
<h3>Why is credit cards not considered as money?</h3>
Credit cards and debit cards are not considered to be money, even though they are used to purchase goods and services. It is so because they are not issued by Federal Reserve which has a monopoly over money supply in the U.S.
<h3>Why are credit cards excluded from the equation for money supply?</h3>
When calculating the money supply, the Federal Reserve includes financial assets like currency and deposits. In contrast, credit card debts are liabilities.
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