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

b. Store of value, unit of account, medium of exchange

Step-by-step explanation:

Money's function as a store of value is when it retains its intrinsic value for a considerable time and does not perish.

The function as unit of account is when commodities can be associated with a certain value in terms of money.

Medium of exchange is when money is generally and readily accepted by any and all economic agents in return for goods and services.

The correct order that explains these functions is

store of value, unit of account, medium of exchange

Hope that helps.