Question

A survey conducted by American Express in 2015, found that 23% of American adults "hide bills in a secret location at home." a. When people keep their currency for the purpose of saving it, money performs the following function O People are holding money for future use, so the money is functioning as a store of value. O Money held within your home is easy to spend, so it functions as a medium of exchange Since the hidden money is not reflected on tax returns, the money will function as a separate unit of account. OA person's money is easier to count this way, so the money is a unit of account b. Which of the following should be a concern to individuals who keep large amounts of currency hidden in their home Instructions in order to receive full credit you must make a selection for each option. For correct answers, click the box once to place a check mark. For incorrect answers, click the option twice to empty the box The money could be found and stolen. The money wil lose its real value due to inflation as no interest is eamed on hidden money The money can be destroyed in the event of a flood or house fire.

Answer 1

Answer A) Option A (People are holding money for future use, so the money is functioning as store of value)

Answer B) Option B (The money will loose its value due to inflation as no interest is earned on hidden money)