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. medium of exchange, unit of account, store of value b. medium of exchange, store of value, unit of account c. store of value, medium of exchange, unit of account d. store of value, unit of account, medium of exchange

Answer 1

The correct answer is option d.

Step-by-step explanation:

When $500 is kept in the piggy bank, it represents the store of value function of money,as currency notes are used to store a value of $500 for future use.

The price of laptop is $500, this price represents the unit of account function of money. Money here is being used to represent the value of laptop.

The $500 saved in piggy bank is used to purchase the laptop, this represents the medium of exchange function of money. Here money is being used to exchange goods and services.