Which of the Following Combinations of Assets Is Considered to Be

question 192

Multiple Choice

Which of the following combinations of assets is considered to be money?

• A)currency in circulation, checkable bank deposits, and credit cards
• B)currency in circulation, checkable bank deposits, and traveler's checks
• C)currency in circulation and in bank vaults, checkable bank deposits, and traveler's checks
• D)currency in circulation and in bank vaults, checkable bank deposits, and credit cards

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Definitions:

Loan

A sum of money that is borrowed, which must be paid back with interest, typically used for significant purchases, investing, or to cover cash flow shortfalls.

Balloon Loan

A type of loan that has low, fixed monthly payments for a period of time, followed by a large payment for the remaining amount due at the end of the term.

Amortized

Refers to the process of paying off debt over time in regular installments of interest and principal sufficient to repay the loan in full by its maturity date.

Principal

The original amount of money loaned or invested, separate from the interest or earnings it accrues over time.