Which of the Following Is One of the Most Important

question 145

Multiple Choice

Which of the following is one of the most important benefits of money in an economy?

• A)Money allows for the exchange of goods and services.
• B)Money allows for the accumulation of wealth.
• C)Money makes exchange easier,leading to more specialization and higher productivity.
• D)Money encourages people to produce all of their own goods (self-sufficiency)and therefore increases economic stability.

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Definitions:

Equivalent Annual Cost

A financial analysis tool used to compare the cost-effectiveness of two or more investment projects with differing lifespans by calculating the annual cost of each project over its life.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Equivalent Annual Cost

A financial analysis tool used to compare the cost effectiveness of two or more alternatives with different lifespans expressed on an annual basis.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.