Alabama Property and Casualty Practice Exam

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Which of the following is NOT considered money?

Currency
Coins
Registered check
Securities

The correct answer is: Securities

Securities are not considered money as they represent an investment or a claim on future earnings, rather than a medium of exchange. Money typically refers to tangible assets that can be used to purchase goods and services directly. This includes currency, which is the paper money issued by a government, and coins, which are physical forms of money made from metal. Both currency and coins serve as a legal tender for transactions. On the other hand, a registered check is a type of payment instrument that can be encashed, thus facilitating the transfer of money, but it itself is not classified as money in the same sense as currency or coins. It is a promise to pay a certain amount and needs to be deposited or cashed to become usable as money. In essence, money includes forms that have widespread acceptance for economic transactions and can be used immediately, whereas securities require additional steps for conversion into cash and may involve market fluctuations.