A Shopping Guide Quotes the Price of Good X at $12

question 38

Multiple Choice

A shopping guide quotes the price of good X at $12 and good Y at $18. This is an example of money serving as:

• A) a medium of exchange
• B) a means of storing wealth
• C) a means of evaluation
• D) an investment good

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Definitions:

Temporary Investments

Investments in stocks, bonds, or other securities that a company intends to sell within a short period, typically one year.

Excess Cash

The amount of cash a company possesses that exceeds the minimum level needed to maintain its operations and investment plans.

Brokers' Commissions

Fees paid to brokers for their role in facilitating transactions, such as buying or selling securities, real estate, or insurance products.

Temporary Investments

Assets purchased with the intention to be sold in the short term for profit, such as stocks or bonds, not intended for long-term holding.