Final answer:
The statement about the magnetic stripe card is true. It uses electromagnetic induction to store and transmit information, and cards should not be kept near strong permanent magnets to avoid data loss.
Step-by-step explanation:
The statement that a magnetic stripe card is similar to a plastic credit card containing an electromagnetic surface capable of holding a small amount of information is true. The black strip on the back of credit cards and other types of cards is composed of magnetic material which stores data.
This information can be accessed through a process known as electromagnetic induction, which is fundamental to how these cards function when swiped through a card reader.
It is indeed true that it is not recommended to place credit cards with magnetic strips near permanent magnets because this can demagnetize the strip and erase the information stored on it.
The usage of magnetic stripe cards is widespread in financial transactions allowing movement of money when making purchases, however, the existence of more cards does not alter the total money supply within the economy.
Electromagnetic induction also finds application in other technologies, such as certain types of pens used with tablets and in mechanisms like flashlights that charge through mechanical work turning into electrical energy.
Electromagnetic induction is also used in other technologies beyond cards.