If the Prices of Goods and Services Were Expressed in Terms

question 12

Multiple Choice

If the prices of goods and services were expressed in terms of carved wooden beads, then the carved wooden beads would be serving as a

• A) medium of exchange.
• B) store of value.
• C) unit of account.
• D) mechanism for transforming present purchases into future purchases.

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Definitions:

Loan Balance

The remaining amount of money that a borrower must pay on a loan at any given time.

Compounded Semi-annually

Interest calculation method where interest is added to the principal twice a year, increasing subsequent interest calculations.

Loan Payment

The amount of money required to be paid back periodically (usually monthly) on a loan, including both principal and interest.

Compounded Semi-annually

Refers to the process of calculating interest on an investment or loan twice a year.