Question

1. The roles of money Brian is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Brian decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keep the change. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Medium of Exchange Unit of Account Store of Value Brian can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. Brian accumulates money in his savings account for future purchases. Brian buys his lunch with a $10 bill.

Answer 1

Brian can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much.

• unit of account

Brian accumulates money in his savings account for future purchases.

• Store of value

Brian buys his lunch with a $10 bill.

• Medium of exchange

Step-by-step explanation:

Money's four functions are:

1. Medium of exchange = you can use money to purchase or sells goods and services.
2. Unit of account = money helps us to understand the relative value of goods and services, since the higher the price, the higher the value of a good or service is.
3. Store of value = you can save money for future use
4. Standard of deferred payment = money allows people to take or hand out loans that will be repaid in the future