Which of the Following Would Result Without Money to Serve

question 13

Multiple Choice

Which of the following would result without money to serve as a medium of exchange?

• A)We would all have to be self-sufficient.
• B)The transactions cost of exchange would increase.
• C)Gains from trade would be impossible.
• D)Our cost of living would be higher.

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Definitions:

Receiving Payment

The process of collecting money from customers or clients in exchange for goods or services rendered.

Notes Payable

Short-term or long-term liabilities representing amounts owed by a business, documented by a formal promissory note.

Accounts Payable

Liabilities owed by a business to its suppliers or creditors for goods and services purchased on credit.

Note Payable

A written promise to pay a certain amount of money at a future date, often including interest.