The Unit of Account

question 130

Multiple Choice

The unit of account

• A) is a type of accounting of how many currency units there are in an economy.
• B) is an accounting of the total units of goods and services produced in an economy.
• C) is an agreed measure for stating the prices of goods and services in an economy.
• D) is a type of value stored within all assets.

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Definitions:

American Option

A type of options contract that can be exercised at any time before its expiration date.

Expiration Date

In finance, it refers to the date on which a financial instrument (e.g., options, futures) ceases to be valid and the right to exercise it no longer exists.

Exercised

In finance, most commonly refers to the act of utilizing one's right to buy or sell an underlying financial instrument, such as stocks, as specified in a contract.

Put Option

A financial contract giving the option buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time frame.