Economics question...help me...please?

Question

Why are checking account balances, but not credit cards, regarded as "money"?

Answer 1

A checking account is set up based on the amount of money you have in the bank. Therefore the balance is your money. But for credit card its not real money. When you use credit card you are borrowing money to use it and you enter into agreement to pay back the lender. You are assigend a credit limit, upto which you can borrow. So what ever remaining balance in your credit accoutn is not your money rather your right to borrow from the lender. You can only borrow from the lender the remianing balance and must pay back but it is not your asset, possesion, money

Answer 2

Your account balance is money, you have your money stored in the bank. So it counts as part of your assets. (This is not entirely true but it works to answer your question).

Your credit card approved credit is potential. It can be turned into money but it counts as a debt for you every time you do. When you get your money from your account balance it doesn't.

Answer 3

Because a credit card is an instant loan; it's not your money.