When We Keep Part of Our Wealth in a Bank

question 48

Multiple Choice

When we keep part of our wealth in a bank cheque account, we are using money as a

• A) unit of currency.
• B) medium of exchange.
• C) barter token.
• D) unit of account.
• E) store of value.

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Definitions:

Fair Value

The estimated price at which an asset or liability could be traded in an open market transaction, reflecting the current value rather than historical cost.

Exit Price

The amount that could be received for selling an asset or transferring a liability in an orderly transaction between market participants at the measurement date.

Asset

Resources owned or controlled by a person or company, capitalized on the balance sheet, expected to provide future economic benefits.

Financial Statement Forecasts

Projections of future financial performance, often including income statements, balance sheets, and cash flow statements, based on expected economic conditions and company strategies.