Barter May Be the Only Alternative _____

question 117

Multiple Choice

Barter may be the only alternative _____

• A) if there is an excess supply of money.
• B) if the price system is not allowed to function properly.
• C) if disinflation sets in.
• D) if hyperinflation sets in.
• E) if fiat money is discontinued.

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Definitions:

Market Conversion Value

The current market value of a convertible security if it were converted into the underlying shares of stock today.

Conversion Ratio

The conversion ratio is the number of shares an investor receives when converting a convertible security, such as a convertible bond or preferred stock, into common stock.

Bond Indenture

A legal contract detailing the terms and conditions under which a bond is issued, including the obligations of the issuer and the rights of the bondholders.

Sinking Fund

A sinking fund is a method by which a company sets aside money over time to retire its preferred stock, bonds, or debentures before or at maturity, to ensure investment security for bondholders.