In comparing money to a U.S. Treasury bond held by an individual, we can say:
A) the treasury bond is an asset but money is not.
B) money is an asset but the U.S. bond is a liability of the individual.
C) both are stores of value.
D) money is a store of value but the bond is not.

Question

Quizplus · Accepted Answer

Both money and a U.S. Treasury bond held by an individual are stores of value. Money can be used immediately to purchase goods and services, while a U.S. Treasury bond can be sold for cash in the future. Both can be used to hold value over time. Option A is incorrect because money is also a type of asset, while option B is incorrect because a U.S. bond is an asset, not a liability, for the individual who holds it. Option D is incorrect because a U.S. bond is also a store of value.

In Comparing Money to a U