Money Is Any Item That

question 53

Multiple Choice

Money is any item that

• A) serves as a medium of exchange for goods and services.
• B) can be converted into silver with relatively little loss in value.
• C) can be converted into gold with relatively little loss in value.
• D) facilitates a connecting link between credit instruments and debt instruments.

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Definitions:

Coupon Rate

The annual interest rate paid by the issuer of a bond to the bondholder, typically expressed as a percentage of the bond's face value.

Secondary Market

A marketplace where previously issued securities and financial instruments such as stocks, bonds, options, and futures are bought and sold.

Interest Rates

The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage.