Debit and credit cards facilitate transactions but are not money; special college cards function like debit cards and contribute to the money supply. Overdraft results from spending more than available funds, incurring additional fees.
Debit cards enable direct fund transfers from a checkable account to a merchant and immediately deduct the purchase amount from the user's account, different from credit cards that involve borrowing money. Both credit and debit cards are not money themselves but represent instructions to transfer funds.
In the college context, special cards used by students to make purchases rely on deposited money. These cards, functioning similarly to debit cards, would count as part of the money supply because the funds are readily available for transactions.
Overdraft occurs when an account holder withdraws more money than available, leading to potential fees imposed by the bank for the negative balance.
https://brainly.com/question/2028425