When a Grocery Store Accepts Your $10 Note in Exchange

question 3

Multiple Choice

When a grocery store accepts your $10 note in exchange for bread and milk, this illustrates that the $10 note is serving as a:

• A)medium of exchange.
• B)unit of account.
• C)store of value.
• D)standard of deferred payment.

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Definitions:

Capital Investment Analysis

Evaluation processes used by businesses to assess the potential profitability and risk of investment opportunities.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not intended for sale, such as buildings, machinery, and equipment.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, taking into account the time value of money.