Question

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

Answer 1

Answer is Option B.

( store of value, unit of account, medium of exchange )

Explanation :

* Store of value : Money is well-suited to storing value because of its purchasing power. It is also useful because of its durability. Here 'the money $500 is stored in the piggy bank'.

* Unit of account : Unit of Account is one of the function of money. The value of something is measured in a specific currency. This allows different things to be compared against each other; example, goods, services, assets, liabilities,etc. Here 'the laptop price is posted as $500'.

* Medium of Exchange : Money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. Here 'the money $500 used to purchase the laptop'.