An Item That People Can Use to Transfer Purchasing Power

question 115

Multiple Choice

An item that people can use to transfer purchasing power from the present to the future is called

• A) a medium of exchange.
• B) a unit of account.
• C) a store of value.
• D) None of the above is correct.

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Definitions:

Financial Statement Ratios

Analytical tools used to evaluate relationships between financial statement items, aiding in assessing a company's performance and financial health.

Loan Default

The failure to meet the legal obligations or conditions of a loan, typically when a borrower is unable to make the required payments.

Credit-worthiness

An evaluation of the ability of an individual or entity to fulfill financial obligations based on their credit history and financial health.

Debt-service Requirements

The amount of money needed to cover the payment of interest and principal on a debt for a particular period.