Which of the Following Is a Consequence of the divisibility

question 79

Multiple Choice

Which of the following is a consequence of the divisibility characteristic of money?

• A) Units of money do not expire after a certain time limit.
• B) Units of money can be accurately matched with the value of goods.
• C) Units of money are easily carried.
• D) Units of money have relatively stable value.
• E) Units of money of different nations are easily converted to other units of money.

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Definitions:

Serial Bonds

Bonds that mature at different intervals over a period of time, allowing the issuer to retire a portion of the bond issue at regular intervals.

Present Value

The immediate value of a future stream of income or lump sums of money, assessed with a specific interest rate in mind.

Nominal Rate

The interest rate stated on a financial instrument, without adjustment for the full effect of compounding or inflation.

Annuity

A financial product that pays out a fixed stream of payments to an individual, often used as part of retirement strategies.