Money Is Not Considered to Be an Economic Resource Because

question 333

Multiple Choice

Money is not considered to be an economic resource because

• A) as such it is not productive.
• B) money is not a free gift of nature.
• C) money is made by humans.
• D) idle money balances do not earn interest income.

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Definitions:

Two-factor Model

A Two-factor Model in finance is an asset pricing model that uses two variables to calculate the value of an asset or the expected return.

Commodity Prices

The market prices for raw materials or primary agricultural products.

Market Risk

The risk of losses in investments due to factors that affect the entire market or economy.

Arbitrage Opportunity

A situation in which it is possible to simultaneously buy and sell an asset or commodities in different markets to profit from price differences.