Question

Not having enough money for the shoes you want, getting change when you pay for an 18.50 purchase with a20 bill, paying for something in Florida with the money you withdrew from an ATM in California, using money to buy items at the store, using a dollar printed in 2005 in a vending machine, knowing that your job pays you a certain amount per hour, putting money in your pocket, a nickel that the US Mint minted last year looks the same as the nickels they minted this year, paying for items using a debit card can charge high interest rates if the amount due is not paid monthly. Which of the following characteristics of money is being described in these scenarios?

1) Unit of account
2) Divisibility
3) Durability
4) Portability
5) Medium of exchange
6) Uniformity
7) Acceptability

Answer 1

The scenarios described various characteristics of money such as being a medium of exchange, unit of account, durable, portable, uniform, acceptable, and divisible. A scenario citing debit card interest rates focuses more on credit terms than a characteristic of money.

Step-by-step explanation:

The characteristics of money being described in the scenarios are:

• Medium of exchange: When money is used to buy items at the store or when using a dollar from 2005 in a vending machine.
• Unit of account: Knowing your job pays you a certain amount per hour or when you get change in a transaction; money's function to measure and compare value is highlighted.
• Durability: Using a nickel minted last year which looks the same as those minted this year signifies money's ability to have a long useful life.
• Portability: Paying for something in Florida with the money you withdrew from an ATM in California, or putting money in your pocket, illustrates money's ease of being moved and used in different locations.
• Uniformity: Nickels looking the same regardless of the year they were minted refers to the consistent features and recognized value money holds.
• Acceptability: Money, regardless of where it is withdrawn or printed, is widely accepted for transactions such as vending machines or ATMs.
• Divisibility: Getting change back from a purchase demonstrates money's capability to be broken down into smaller units.

The scenario that mentions debit card interest rates isn't best related to a characteristic of money, but rather an aspect of credit terms.