Inflation Reduces the Ability of Money to Function as a

question 123

Multiple Choice

Inflation reduces the ability of money to function as a

• A) medium of exchange.
• B) medium of value.
• C) unit of account.
• D) store of value.

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Definitions:

Promissory Note

A written promise to pay a specified sum of money to a designated person at either a fixed or determinable future time.

Contributory Negligence

A legal defense that involves the failure of an injured party to be careful enough to ensure personal safety.

Lack of Possession

The absence of physical custody or control over an object, property, or asset that one might legally own or have rights to.

Holder in Due Course

A party who has acquired a negotiable instrument in good faith and for value, thereby obtaining rights to it free from certain defenses.