Which of These Is an Advantage of Money as a Store

question 106

Multiple Choice

Which of these is an advantage of money as a store of value?

• A)It can generate high interest income.
• B)It can facilitate hassle-free international exchange.
• C)It can be easily liquidated.
• D)It can signal a nation's economic health.
• E)It can increase potential output.

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Definitions:

Pretax Income

The total earnings of a company before taxes have been deducted, also known as earnings before tax (EBT).

LIFO Method

"Last In, First Out" method; an inventory strategy where the most recently produced items are sold first, leaving older inventory in stock.

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for "First-In, First-Out."

Inventory Valuation

Inventory valuation is the cost associated with an entity's inventory at the end of a reporting period, affecting the cost of goods sold and the inventory balance on the balance sheet.