Final answer:
Plastic money represents a loan when it refers to credit cards, but not when it refers to debit cards. Changes in the financial market that include more individuals willing to borrow and lend can result in an increase in the quantity of loans.
Step-by-step explanation:
The term "plastic money" generally refers to credit cards and debit cards. It's important to note that not all plastic money represents a loan. When you use a debit card, for instance, the money is directly withdrawn from your own bank account. However, with a credit card, you are essentially taking a short-term loan from the card issuer, to be paid back within the card's billing cycle. To answer your question directly, plastic money represents a loan only when it comes to credit cards.
As for changes in the financial market that lead to an increase in the quantity of loans made and received, More people who want to borrow and more people who want to lend both contribute to an increase in loans. A rise in economic activity often sees both of these factors happen simultaneously. The statement "plastic money represents a loan" is False. Plastic money refers to the use of credit cards or debit cards for making purchases, and it does not represent a loan. When using plastic money, the transaction is typically processed electronically, and the payment is deducted directly from the user's bank account or credit line.