ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consumers can make purchases without of writing check
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They expose consumers to greater likelihood of identity theft
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They slow down the economy’s recovery
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They decrease availability of currency in the economy
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Detailed explanation-1: -Monetary Policy Reason: Uses it to regulate the nation’s money supply. Which of the following is a disadvantage of using of using phone cards, debit cards, electronic transfers, and ATM cards? They expose consumers to greater likelihood of identity theft.
Detailed explanation-2: -The Federal Reserve uses monetary policy to regulate the nation’s money supply. Monetary policy is directed at expanding or contracting the supply of money and credit in the U.S. economy.
Detailed explanation-3: -Here’s why: Convenience. Debit card payments allow you to complete transactions without having to fumble for cash, dig around in your purse or pockets for exact change, write out a check or go to an ATM. And with more and more businesses now offering the option of debit card payments, it’s more convenient than ever.
Detailed explanation-4: -Use of credit was uncommon prior to 1917 because: Laws prevented lenders from charging high interest rates, borrowing money was no socially acceptable, and lending to others was not profitable. Most Americans use credit when it comes to buying big-ticket items like furniture.