When the Soviet Union Began Breaking Up in the Late

question 102

True/False

When the Soviet Union began breaking up in the late 1980s, cigarettes began replacing the ruble as the medium of exchange, even though the ruble was legal tender. The cigarettes provide an example of fiat money.

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Definitions:

Convertible Bonds

Bonds that can be converted into a predetermined amount of the issuing company's equity at certain times during its life, usually at the discretion of the bondholder.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a predetermined period.

Conversion Ratio

The number of shares a bondholder can receive upon converting their bonds into equity shares.