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Maru [420]
3 years ago
7

Are outstanding credit card balances counted as part of the money supply?

Business
1 answer:
V125BC [204]3 years ago
3 0
<span>Credit card balances are not counted as part of the money supply, because c</span>redit card balances reflect funds that have been borrowed. Unlike money, they cannot be used as a means of payment. The M1 supply contains <span>coins, paper currency, demand deposits, other checkable deposits, and traveler's checks. So, o</span>utstanding balances on credit cards is not a component of the M1 money supply.
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