When You Put Your Spare Change into Your Child's Piggy

question 62

Multiple Choice

When you put your spare change into your child's piggy bank, money is serving as a

• A)store of value.
• B)unit of account and store of value.
• C)medium of exchange and unit of account.
• D)medium of exchange.
• E)unit of account.

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Definitions:

Risky Investment

An investment that carries a higher probability of losing money, alongside the possibility of yielding high returns.

Risk-free Investment

An investment that is considered to have no risk of financial loss, often represented by government bonds in stable countries.

Beta

Beta is a measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates that the stock is more volatile than the market, while a beta less than 1 suggests it is less volatile.

Expected Return

The weighted average of all possible returns for a given investment, accounting for the likelihood of each outcome.