QUESTION 8- complete the following sentences by selecting one of the options in

Question

QUESTION 8- complete the following sentences by selecting one of the options in the square brackets [ fiat What function of money is highlighted when Sally pays her cell phone bill with cash? money / medium of exchange / store of value / unit of account / commodity money] When a fisherman records the value of a day's catch in terms of dollars, dollars serve as_ fiat money / medium of exchange / store of value / unit of account / commodity money] What function of money is highlighted if someone puts cash under his or her mattress to have on hand for unexpected emergencies? unit of account / commodity money] [ fiat money / medium of exchange / store of value /

Explanation / Answer

1> Medium of exchange

A medium of exchange is an intermediary instrument used to facilitate the sale, purchase or trade of goods between parties.

2> Unit of account

Reason

A unit of account in economics is a nominal monetary unit of measure or currency used to represent the real value of an economic item.

3> Store of value

A store of value is the function of an asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved.

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