If We Look at the Value of Money in Terms

question 28

Multiple Choice

If we look at the value of money in terms of how many units of a good it takes to buy one dollar, then inflation means:

• A) it would take more goods to buy the same dollar.
• B) it would take fewer goods to buy the same dollar.
• C) the same number of goods would buy fewer dollars.
• D) it would take fewer dollars to buy the same goods.

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Definitions:

Shares

Ownership segments in a corporation or financial asset, allowing for an equal share in declared profits, distributed as dividends.

No-Par Common Stock

Equity securities issued without a par value, where the board of directors determines the issuing price.

Par Preferred Stock

Preferred shares of a company's stock issued at a specific nominal value and with fixed dividend payments.

Cash

Liquid funds available for transaction or investment purposes.