Final answer:
Debit cards are linked to checking accounts and transfer funds directly, differing from credit cards. They are part of the money supply as they use existing funds in accounts.
Explanation:
Debit cards allow individuals to transfer funds directly from a checkable account to a merchant without writing a check, unlike credit cards. While debit cards are connected to the user's bank account and utilize the available funds, credit cards provide a short-term loan from the credit card company. Debit cards are considered part of the money supply as they represent actual funds in a checking account.
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