Catherine Compares the Prices of Candy Bars in Order to Get

question 32

Multiple Choice

Catherine compares the prices of candy bars in order to get the ʺbest buy.ʺ This comparison represents using money as a

• A) unit of account.
• B) store of value.
• C) medium of exchange.
• D) none of the above

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Definitions:

Yield To Maturity

The expected total profit from a bond when retained until it reaches its maturity date.

Face Value

The nominal or dollar value printed on a security, such as a bond or stock, representing its official worth at issuance.

Nominal Discount Rate

The discount rate that has not been adjusted for inflation, representing the percentage reduction in present value compared to future value.

Inflation Rate

The percentage increase in the general level of prices for goods and services over a period, typically measured on an annual basis.