Which of the Following Items Serve as a Store of Value

question 140

Multiple Choice

Which of the following items serve as a store of value?
I. cash in your pocket
II. the balance in your checking account
III. an original Picasso painting
IV. a $1,000 corporate bond

• A) I and II
• B) I, II, and III
• C) I, II, and IV
• D) I, II, III, and IV

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Definitions:

Cash Inflow

Money received by a company from its various activities, including sales, investments, financing, and operational activities.

Required Rate

Required rate refers to the minimum return an investor expects to achieve on an investment to consider it worthwhile.

Rate Of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Net Present Value

A valuation method that calculates the current worth of a project or investment based on its expected future cash flows.