Question

Refer to Box 1. Sondra has $1,100 in her checking account. Identify what role money plays in this part of the story

(a) Medium of exchange
(b) Unit of account (c) Store of value
2. Refer to Box 1. Sondra can easily determine that the price of the computer is more than the price of the vacation. Identify what role money plays in this part of the story
(a) Medium of exchange
(b) Unit of account (c) Store of value 1 Introduction to Economics B - Problem Set 5 2 3.
Refer to Box 1. Sondra writes a check for $899. Identify what role money plays in this part of the story
(a) Medium of exchange
(b) Unit of account
(c) Store of value

Answer 1

Money serves as a medium of exchange, unit of account, and store of value.

Step-by-step explanation:

Money serves several functions: a medium of exchange, a unit of account, and a store of value. In the first scenario, Sondra's money in her checking account can be used to buy things, making it a medium of exchange. In the second scenario, Sondra can compare the prices of different items using money as a unit of account. In the third scenario, Sondra writes a check, which is a form of money used as a medium of exchange.