Which of the following statements about money is false?

A. Credit cards are not money.


B. Money is anything that serves the functions of money.


C. The narrowest definition of money is L, which stands for liquidity.


D. When a bank incurs liabilities it creates money.Which of the following statements about money is false?
Know b is right.





there are different kinds of money supply.





the M1 money supply is simply the amount of cash available at any time. (not including that stashed in a mattress or buried in the back yard)





The M2 mony supply includes the M1 Plus credit and other highly liquid forms of equity like MoneyMarket accoutnts, bearer bonds and other easily exchanged forms of credit.





there are other types of money supplies that are more and more complicated.





C is the most accurate answer though.





D is wrong as a bank is like any other institution or person, you just cant create money. Money ';creation'; is another topic you should investigate.





werWhich of the following statements about money is false?
All of them. Money is anything that facilitates the trade of goods or services.
I would have to say A. Credit Cards are not money.





Rob


http://abercrombiefitchwholesalelist.blo鈥?/a>
I am not completely sure, but if I had to guess, I'd go with D. Banks do not ';create'; money, they simply move it from Point A to Point B. They invest it and use it to cover liabilities, but this isn't the same as ';creating'; it, to my way of thinking. The other three statements seem grossly true. But again...I'm no economist. I just thought your question was interesting.