Which of the Following Would NOT Perform Well as Money

question 16

Multiple Choice

Which of the following would NOT perform well as money?  

• A) coins 
• B) sea shells 
• C) cigarettes 
• D) diamonds

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share in the company's profits via dividends.

Retained Earnings

Profits generated by a company that are not distributed to shareholders as dividends but are instead reinvested in the business or held for future use.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets over its current liabilities.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term liquidity.