The Main Disadvantage of Using Money as a Store of Value

question 14

Multiple Choice

The main disadvantage of using money as a store of value is that:

• A)other assets provide greater anonymity than cash.
• B)barter is a more efficient way to conduct transactions than using money.
• C)unlike other assets, money serves as a medium of exchange.
• D)other assets pay relatively higher rates of interest than money.

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Definitions:

Customer List

A record or database containing information about a business's customers, including their contact information, purchase history, and preferences.

Impairment Losses

Financial losses recognized when the carrying amount of an asset exceeds its recoverable amount.

Amortization

The systematic reduction of the value of an intangible asset over its useful life to reflect its declining value or the allocation of the cost of an intangible asset over a period of time.

Intangible Capital Asset

Non-physical assets, such as patents, copyrights, trademarks, and goodwill, that have value due to the rights or advantages they bring to a business.