Question

Which of the following are examples of money being used as a store of value? select...

Which of the following are examples of money being used as a store of value? select all that apply.

  

Comparing how many dollars it takes to attend college each year to your expected annual earnings

   

Buying a cup of coffee with a dollar bill

   

Keeping $5000 in an envelope in your sock drawer for emergencies.

   

Comparing how many dollars it takes you to run your car each year

   

Buying a concert ticket

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Answer #1

When money is used as a store of value it is basically serving the purpose of storing wealth which can be used at a future point of time. It's value is predictable when it is retrieved in future.

When you purchase a cup of coffee or a concert ticket you are actually using it as a medium of exchange and not store of value. also when you compare how many dollars you will required to run your car each year is the function of unit of account because money is used as a yardstick.

Select Comparing how many dollars it takes to attend college each year to your expected annual earnings and Keeping $5000 in an envelope in your sock drawer for emergencies. In both these cases you are using money as storing wealth in future.

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