Which of the Following Most Accurately States the Economic Significance

question 154

Multiple Choice

Which of the following most accurately states the economic significance of exchange?

• A) Physical goods have value because they exist; exchange can neither increase nor decrease their value.
• B) Production of physical goods creates value; exchange merely redistributes this value.
• C) Exchange creates value by moving goods from parties who value them less to parties who value them more.
• D) Exchange reduces value since it consumes resources without adding to the physical supply of goods.

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Definitions:

Canada Savings Bond

A secure investment instrument offered by the Canadian government, allowing citizens to lend money to the government with a guaranteed return.

Redeemed

Refers to the act of exchanging a financial instrument, such as a bond or coupon, for cash or goods.

Interest Rates

The percentage of a loan or deposit amount charged as interest to the borrower or paid to the investor.

Escalating Rate GIC

A Guaranteed Investment Certificate (GIC) with an interest rate that increases at predetermined intervals throughout the term.