An Example of Financial Instruments That Are Primarily Used as Stores

question 6

Multiple Choice

An example of financial instruments that are primarily used as stores of value is:

• A)insurance contracts.
• B)home mortgages.
• C)options.
• D)futures contracts.

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Definitions:

Total Revenue

The total amount of money received by a company for goods sold or services provided during a certain period.

Total Cost

The total expenses involved in creating goods or services, encompassing both constant and fluctuating costs.

Perfectly Competitive Firm

A business that operates in a perfectly competitive market, where it is a price taker due to the presence of many sellers offering homogeneous products.

Marginal Cost

The cost incurred by producing one more unit of a good or service.