Which Is an Example of Money Being Used as a Unit

question 42

Multiple Choice

Which is an example of money being used as a unit of account?

• A) A customer buys a burger,fries,and medium diet cola for $6.95.
• B) A restaurant's profits for the week of October 3 to October 10 are $1,250.
• C) A customer receives $3.05 in change and returns the next day to make another purchase.
• D) A restaurant sells a large ice cream sundae and charges the customer's debit card.

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Definitions:

Bond Issue

A Bond Issue is the process by which a borrower issues bonds to lenders or investors as a form of debt financing, promising to repay the principal along with interest at a future date.

Common Stock

A type of equity security representing ownership in a corporation, with holders possibly entitled to vote on corporate matters and receive dividends.

Shares Outstanding

The total number of shares of a corporation that have been issued and are currently owned by shareholders.

Cost of Equity

The return a firm theoretically pays to its equity investors to compensate for the risk they take by investing in the stock.