What Characteristic Defines Something as Money

question 486

Multiple Choice

What characteristic defines something as money?

• A) assets declared by the government to be of value
• B) a medium of exchange universally accepted in an economy
• C) notes you can deposit in a savings account
• D) an asset that earns interest

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Definitions:

Pre-money Valuation

The valuation of a company immediately before it goes through a round of financing or receives external funding.

Post-money Valuation

The estimated value of a company after external financing and injections of equity have been added to its balance sheet.

Angel

A wealthy person who funds a new business, typically in return for convertible debt or a share in the company's equity.

Pre-money Valuation

The value of a company as estimated before the injection of new capital or investments.