If 6 People Invest $700 Each in a Stamp Collection

question 205

Multiple Choice

If 6 people invest $700 each in a stamp collection and after a year the collection is worth $4,050, how much did each person lose?

• A) Each person lost $75.
• B) Each person lost $10.
• C) Each person lost $3,350.
• D) Each person lost $25.
• E) Each person lost $150.

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Definitions:

Money Supply

The total amount of money available in an economy at a specific time, including cash and various types of deposits.

Government Securities

Financial instruments issued by the government to finance its expenditures, offering a return to the investors.

Banking System

The network of institutions that accept deposits, offer loans, and provide a variety of financial services to their customers, including savings and checking accounts.

Paper Money

Currency in the form of paper notes, issued by the government or central bank, representing a claim on the issuing country's government.