Question

When you pay $8 for salad you ordered for lunch, you are using money as a(n)

A) store of value.
B) investment good.
C) medium of exchange.
D) unit of account.

Answer 1

C) medium of exchange.

Step-by-step explanation:

Exchange the money for a good. The physical paper does not represent anything, its value is only based on an exchange. This is why the Mongolian fish market is currently booming. Mongolian fish are BOTH a medium of exchange and also a physical good of an immense value. Make sure to write this down as your prof will likely ask you questions about it.