Database Fundamentals — Question 6

You work at a coffee shop. They ask you to set up a website that stores charges on purchases.
You need to recommend a data type in a database table to run financial functions against the charged amounts.
Which data type should you recommend?

Answer options

• A. Money
• B. Bit
• C. Varchar
• D. Binary

Correct answer: A

Explanation

The 'Money' data type is specifically designed to accurately represent currency values and perform financial calculations, making it the ideal choice for storing charged amounts. The 'Bit' type is used for binary values, 'Varchar' is for variable-length strings, and 'Binary' is for binary data, none of which are suitable for financial operations.