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Stella [2.4K]
3 years ago
14

Why is representative money more useful than commodity money?

Business
2 answers:
love history [14]3 years ago
8 0

<span>Representative money is portable, durable, divisible, and acceptable.</span>

tatuchka [14]3 years ago
8 0

Before the invention of money, people exchanged the goods produced. For example, a corn producer traded with a sugar beet producer. This means that each commodity has an intrinsic value. The problem is that this value is difficult to predict. Representative money has emerged as a way of facilitating trade. Money has peculiar characteristics that differ from commodities. Money is easily carried, highly divisible and accepted by everyone. Since the creation of money, it has become easier to market goods and services.

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Explanation:

Please refer the complete question:

Which of the following statements is correct?

a. The project should definitely be accepted because its expected return (before any risk adjustments) is greater than its required return.

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d. The accept/reject decision depends on the firm's risk-adjustment policy. If Norris' policy is to increase the required return on a riskier-than-average project to 3% over rS, then it should reject the project.

e. Capital budgeting projects should be evaluated solely on the basis of their total risk. Thus, insufficient information has been provided to make the accept/reject decision.

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