Asked by Aveyan Walker on Apr 30, 2024
Verified
You saved $500 in currency in your piggy bank to purchase a new laptop. The $500 you kept in your piggy bank illustrates money's function as a _______. The laptop's price is posted as $500. The $500 price illustrates money's function as a _____. You use the $500 to purchase the laptop. This transaction illustrates money's function as a ______.
A) store of value, medium of exchange, unit of account
B) store of value, unit of account, medium of exchange
C) medium of exchange, unit of account, store of value
D) medium of exchange, store of value, unit of account
Store Of Value
An asset that can be saved, retrieved, and exchanged at a later time, ideally retaining its value over time.
Unit Of Account
A standard numerical monetary unit of measurement of the market value of goods, services, and other transactions.
Medium Of Exchange
A middleman device or framework that assists in facilitating transactions, including the selling, buying, or swapping of items, among participants.
- Discern the principal functions of money and its consequential role within the economic structure.
Verified Answer
GA
Gissela Aparicio LopezMay 02, 2024
Final Answer :
B
Explanation :
The $500 saved illustrates money's function as a store of value, preserving purchasing power over time. The laptop's price tag demonstrates money's function as a unit of account, providing a common measure for the value of goods and services. Using the $500 to buy the laptop shows money's role as a medium of exchange, facilitating transactions.
Learning Objectives
- Discern the principal functions of money and its consequential role within the economic structure.