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Your credit card:

a) Is a form of demand deposit
b) Is a form of time deposit
c) Is an asset
d) Has all the functions of money

So from my understanding, credit cards are not an asset, since they do not store value, can't be sold or given away. Hence they also do not have all the functions of money. But even in terms of deposit, I do not see how credit card fits into that. Please do help, it is much appreciated.

  • Business/Finance -

    I believe that of your choices, asset is the best answer. Each credit card carries a certain dollar-amount of credit, which can be considered an asset.

  • Business/Finance -

    The taught capital structure for QM Industries is 45% common stock 7% preferred and 48% debt. If the cost of common equity for the firm is 17%, the cost of preferred stock is 10%, the before-tax cost of debt is 8.4% and the firm tax rate is 35%, what is the weighted average cost of capital. QM's Wacc is ( ) % round to three decimal places.

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