Question

Felix has saved $30 per week to buy a new Blu-Ray player. He compares two different models: a Panaview that is priced at $130 and a Zony model that is priced at $140. Felix decides to purchase the Zony Blu-Ray player for $140.

Identify what role money plays in each of the following parts of the story.
1. Felix can easily determine that the Panaview model has a lower price than the Zony model.
2. Felix saved $30 per week.
3. Felix pays $140 for the Blu-Ray player.
1. Unit of account
2. Store of value
3. Medium of exchange

Answer 1

1. Felix can easily determine that the panaview model has a lower price = Value of money

2. Felix saved $30 per week = Resource gathering

3. Felix pays $140 for the Blu-Ray = Medium of exchange

Explanation:

1. The price of each blu-ray is notices by Felix as he can easily see the value and compare prices to drive his decision

2. The resource's needed to for obtaining the value which Felix desired is gathered.

3. Exchange of money for desired value or valuable