​Which of the Following Functions of Money Encourages Specialization in the Production

question 32

Multiple Choice

​Which of the following functions of money encourages specialization in the production of goods and services?

• A)​Unit of account
• B)​Store of value
• C)​Standard of deferred payments
• D)​Medium of exchange

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders but is kept by the company to reinvest in its core business or to pay debt.

Net Income

The sum a company holds onto after subtracting expenses and taxes from the total revenue earned.

Cash Dividends

Payments made by a corporation to its shareholders out of the company's current or retained earnings.

Beginning Balance

The amount of money in an account at the start of a new accounting period, carried over from the end of the previous period.