The Evolution of the Payments System from Barter to Precious

question 47

Multiple Choice

The evolution of the payments system from barter to precious metals,then to fiat money,then to checks can best be understood as a consequence of

• A)government regulations designed to improve the efficiency of the payments system.
• B)government regulations designed to promote the safety of the payments system.
• C)innovations that reduced the costs of exchanging goods and services.
• D)competition among firms to make it easier for customers to purchase their products.

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Definitions:

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

Dividend

A distribution of earnings given by a company to its stockholders, typically out of its profits.

Black-Scholes OPM

A model used to calculate the theoretical price of European put and call options, based on factors including the stock's current price, its volatility, the option's strike price, and the risk-free interest rate.

National Paper

Debt instruments issued by a government to finance its national activities and projects.