The Development of Money as a Medium of Exchange Makes

question 132

Multiple Choice

The development of money as a medium of exchange makes trade easier because:

• A) holding money increases people's income.
• B) holding money increases people's wealth.
• C) no other mediums of exchange are available.
• D) money eliminates the "double coincidence of wants" problem.

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Definitions:

Capital Lease

A lease classified as a purchase by the lessee for accounting purposes, where the lessee obtains significant ownership rights over the asset.

Operating Lease

is a rental agreement allowing a lessee to use an asset temporarily without ownership, typically with terms significantly shorter than the asset's life.

Operating Cash Flows

The cash generated from the normal operating activities of a business, reflecting its ability to generate positive cash flow to maintain and grow its operations.

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting in the United States.