Critical Reasoning (CR) | Despite the fact that credit card transactions enhance consumer liquid

­Despite the fact that credit card transactions enhance consumer liquidity, they are properly excluded from a conventional definition of money supply, because credit card use creates a liability that must be repaid. Which of the following must be assumed in order to draw the conclusion above? 

A. Whenever a credit card creates a liability that must be repaid, repayment must be made with some kind of conventional money. 

B. Any transaction that creates an obligation to repay a debt should not be included in a conventional definition of money supply. 

C. Methods of payment that enhance consumer liquidity benefit consumers and merchants even if such methods are excluded from a conventional definition of money supply. 

D. Easy availability of credit cards allows some consumers to incur a higher level of indebtedness than they otherwise would. 

E. Because credit card use creates a liability, it creates an offsetting asset that should also be excluded from a conventional definition
...

Statistics : Posted by sayan640 • on 06 Jul 2024, 04:37 • Replies 0 • Views 64

---