Credit Cards, Debit Cards and Money Demand (Case Study‪)‬

CASE DESCRIPTION The primary subject matter of this case concerns the effect of the introduction of credit cards and debit cards on money demand. The objective is to allow students to apply the results of the four theories of money demand to the changes that are occurring/have occurred in the financial sector. The case has a difficulty level of 3 or 4 and would be appropriate for use in money and banking, financial economics, or intermediate macroeconomics courses. The case is designed to be taught in 1-2 class hours and is expected to require 3-4 hours of outside preparation by students.