The Two Basic Ways to Define Money Are

question 109

Multiple Choice

The two basic ways to define money are

• A)the transactions approach and the fiduciary approach.
• B)the transactions approach and the M1 approach.
• C)the transactions approach and the liquidity approach.
• D)the liquidity approach and the store of value approach.

---

Definitions:

Financial Instrument

A security or financial asset.

Indefinite Future

A future period that is not defined or limited in time, often associated with planning or forecasting under conditions of uncertainty.

Perpetuity

A type of annuity that pays a fixed amount of money indefinitely, with no end date.

Interest Rates

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal.