Question

Question 8 (1 point) Classify the following three scenarios by the role which money plays. The answers will either be medium of exchange, unit of account, or store of value. (1) Darnell deposits $1,200 in his savings account. (2) Rosa buys a new pair of jeans for $90. (3) Bernard compares the prices of the latest iPhone and the latest Android phone and determines that the iPhone is more expensive. Unit of account, store of value, medium of exchange Medium of exchange, unit of account, store of value Store of value, medium of exchange, unit of account Store of value, unit of account, medium of exchange Question 9 (1 point) Which of the following is a correct statement? O A corporation's expected future profitability influences the demand for its stock. O Buying a bond issued by Microsoft corporation makes you a part owner of that corporation. Bonds provide a higher average return than stocks, but they are also a more risky investment. If a corporation issues new stock, it is engaging in debt finance.

Answer 1

a) "C"

Its store of value, medium of exchange, and unit of account.

b) "A"

The expected future profitability of the firm in the market decides the demand for the stock in the market.