During a Period of Severe Inflation, Which Function of Money

question 90

Multiple Choice

During a period of severe inflation, which function of money is most seriously affected?

• A)store of value
• B)unit of account
• C)medium of exchange
• D)means of payment
• E)barter

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Definitions:

Coupon Bonds

Bonds that pay the holder a fixed interest rate (coupon) over the life of the bond, and then return the principal at maturity.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuing entity.

At Issue

A term often used when new securities are released to the market, indicating they are currently being offered for sale to the public.

Coupon Bond

A type of bond that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date when the principal and the final interest payment are paid.