The roles of money Consider the following scenario: Akshay just graduated from c

Question

The roles of money Consider the following scenario: Akshay just graduated from college and Is now In the market for a new car. He has saved up $2,000 for a down payment. He's deciding between a Super and a Duper. The Super Is priced at $23,599, and the Duper Is priced at $18,799. After agonizing over the decision, he decides to buy the Duper. He writes the dealership a check for $2,000 and takes out a loan for the remainder of the purchase price. Identity what role money plays In each of the following parts of the story.

Explanation / Answer

$2000 SAVED IN CHEKING ACCOUNT IS STORE OF VALUE.

PRICE OF SUPER AS COMPARED TO PRICE OF DUPER IS A UNIT OF ACCOUNT.

CHECK FOR $2000 IS A MEDIUM OF EXCHANGE.

STORE OF VALUE IS A TYPE OF SAVING THAT CAN BE USED LATER.

UNIT OF ACCOUNT IS UNIT OF MEASURE TO VALUE COST OF GOODS.

MEDIUM OF EXCHANGE IS SOMETHING THAT IS EXCHANGED BETWEEN BUYERS AND SELLERS WHEN GOODS OR SERVICES ARE PURCHASED.

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