Which of the Following Illustrates the Medium-Of-Exchange Function of Money

question 41

Multiple Choice

Which of the following illustrates the medium-of-exchange function of money?

• A) writing a check to buy a new Volkswagen
• B) noting that the price of a $20,000 Volkswagen is 16,000 euros
• C) keeping $20,000 in cash in your mattress instead of buying a new Volkswagen
• D) driving your $20,000 Volkswagen to a friend's house

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Definitions:

Prospectus

A formal document that companies use to describe the securities they are offering for sale to investors.

SEC

The Securities and Exchange Commission, a U.S. federal agency that oversees the securities industry to protect investors and maintain fair, orderly, and efficient markets.

Advertising Tool

Any method or resource used by businesses to promote their products, services, or brand to potential customers.

Short-swing Profits

Profits earned by corporate insiders from buying and selling their company's stock within a short period, regulated by securities laws.