The functions of money are a. medium of exchange, the ability to buy goods and services, and checking accounts. b. medium of exchange, the ability to buy goods and services, and the ability to pay off debts. c. medium of exchange, unit of account, and store of value. d. store of value, use as a barter mechanism, and unit of account. e. credit cards, checking accounts, currency, and coins.

Rate of return douglas keel, a financial analyst for orange industries, wishes to estimate the rate of return for two similar-risk investments, x and y. douglas's research indicates that the immediate past returns will serve as reasonable estimates of future returns. a year earlier, investment x had a market value of $27 comma 000; and investment y had a market value of $46 comma 000. during the year, investment x generated cash flow of $2 comma 025 and investment y generated cash flow of $ 6 comma 770. the current market values of investments x and y are $28 comma 582 and $46 comma 000, respectively. a. calculate the expected rate of return on investments x and y using the most recent year's data. b. assuming that the two investments are equally risky, which one should douglas recommend? why?