Fiat Money

question 154

Multiple Choice

Fiat money

• A) is worthless.
• B) has no intrinsic value.
• C) may be used as a medium of exchange,but it is not legal tender.
• D) performs all the functions of money except the unit-of-account function.

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Definitions:

Common Stock

Common stock represents units of ownership in a corporation, granting shareholders voting rights and potentially dividends, but also placing them last in priority for company assets upon liquidation.

Retained Earnings

Profits not distributed to shareholders as dividends but instead reinvested in the company's core business or used to pay off debt.

Valuation Model

A financial model that determines the present value of an asset or business, based on variables such as cash flows and growth rates.

Restructuring

The process of reorganizing a company's structure, operations, or finances with the aim of increasing profitability or efficiency.