In Which of the Following Situations Does Money Serve as a Unit

question 49

Multiple Choice

In which of the following situations does money serve as a unit of account?

• A) Goods have a value expressed in the same currency, thus allowing comparisons.
• B) Goods have a value expressed in both a fiat money and commodity money.
• C) Goods have a value expressed in terms of both a commodity money and commodity-backed money.
• D) Goods cannot be assigned a value.
• E) Goods have a value that changes over time.

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Definitions:

Collateralized Debt Obligation

A type of structured asset-backed security (ABS) with multiple tranches that can invest in different types of debt, including bonds and loans, which are grouped together.

Corporate Loans

Loans provided to companies to finance their operations, investments, or expansion projects.

Credit Default Swaps

Financial derivative contracts that allow an investor to swap or offset their credit risk with that of another investor.

Securitization

The process of converting an asset, often a loan or a group of loans, into a marketable security, typically for raising capital.