Suppose That You Find Out from an L

question 208

Multiple Choice

Suppose that you find out from an L.L. Bean catalogue that a sweater costs $30.00. In this case, money is serving as a

• A) medium of exchange.
• B) unit of account.
• C) store of value.
• D) double coincidence of wants.

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Definitions:

Fair Value Hedge

A hedge that protects against changes in the fair value of assets, liabilities, or firm commitments through the use of a derivative.

British Pounds

The currency of the United Kingdom, also known as GBP, which is one of the world's major currencies.

Foreign Exchange Gain

A profit resulting from changes in exchange rates affecting the value of investments or transactions in foreign currencies.

Non-Interest-Bearing Note

A type of debt instrument that does not pay interest but is instead issued at a substantial discount from its face value and pays its full face value at maturity.