Question

Sean just graduated from college and is now in the market for a new car. He has saved up to $4,000 for a down payment. He's deciding between a Super and a Duper. The Super is priced at $23,599 and the Duper is priced at $18,999. After agonizing over the decision, he decides to buy the Duper. He writes a dealership check for $4,000 and takes out a loan for the remainder of the purchase price.

Identify what role money plays in each of the following parts of the story. (Medium of exchange, unit of account, or store of value)
A. Sean writes a check for $4,000.
B. Sean can easily determine that the price of the Super is more than the price of the Duper.
C. Sean has saved $4,000 in his checking account.

Answer 1

Medium of exchange

unit of account

store of value)

Step-by-step explanation:

Functions of money

1. Medium of exchange : money can be used to exchange for goods and services. For example, money serves as a medium of exchange when you buy a car with a check

2. Unit of account : money can be used to value goods and services. SEAN was able to determine which is more valuable between super and duper using the price.

3. Store of value : money can retain its value over the long term, this it can be used as a store of value.