Which of the Following Is Not a Correct Statement About

question 68

Multiple Choice

Which of the following is not a correct statement about money?

• A)Money serves as a medium of exchange.
• B)The value of money generally fluctuates much more than the prices of individual commodities.
• C)Money can provide a means of saving or "storing" things of value in an efficient manner.
• D)Money serves as a means of deferred payment.
• E)As a unit of account, money provides a yardstick to compare values of diverse goods and services.

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Definitions:

Net Present Value

Net present value is a financial calculation that determines the worth of a project or investment by discounting its future cash flows to the present value using a specific discount rate, to assess its profitability.

Present Value Factor

A coefficient used to calculate the present value of a future amount of money or stream of cash flows given a specific rate of return.

Cash Flows

The net amount of cash being transferred into and out of a business, illustrating its ability to generate and use cash.

Incremental Analysis

An examination of the additional benefits and costs of certain business decisions.