ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is NOT a type of currency?
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Coins
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Credit cards
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Federal Reserve notes
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Checks and debit cards
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Explanation:
Detailed explanation-1: -Rewards credit cards. Secured credit cards. Low-interest credit cards. Cashback credit cards.
Detailed explanation-2: -A credit card is not money. It provides an efficient way to obtain credit through a bank or financial institution. It is efficient because it obviates the seller’s need to know about the credit standing and repayment habits of the borrower.
Detailed explanation-3: -Credit cards are debt instruments but debit cards are not. Debit card users can only spend the money available in their bank account unless they have overdraft protection.
Detailed explanation-4: -However, loan payments are not a form of currency.
There is 1 question to complete.