The Unit of Account Function of Money

question 34

Multiple Choice

The unit of account function of money

• A)all of the following are correct
• B)means that money makes the relative values of goods and services more easily known
• C)requires that money be made of something valuable
• D)means that money can be used to save up purchasing power
• E)means that money is more easily counted than goods

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Definitions:

Yield to Maturity

The total return anticipated on a bond if the bond is held until its maturity date, taking into account both interest payments and capital gain or loss.

Term to Maturity

The remaining time until a debt instrument, such as a bond or loan, reaches its due date and the principal must be repaid.

Priced

Determination of the value or amount that must be paid to acquire a good, service, or asset.

Perpetual Bonds

Bonds that do not have a maturity date, allowing them to potentially pay interest forever, making them a form of permanent debt capital for the issuer.