Question

Jen works as a teacher. At the end of each month she puts 20% of her paycheck in her savings account to use to purchase a new car. What conclusion can you make using this example?

A. Jen is using money as a store of value.
B. Jen is using money as a unit of account.
C. Jen is using money as a medium of exchange.
D. Jen is using money as a means of deferring payment.​

Answer 1

Answer: A. Jen is using money as a store of value.

Step-by-step explanation:

A store of value regarding money simply means that money can be saved and then later exchanged in the future when it is needed without the value of the money deteriorating.

Medium of exchange is a function of money that is used when one makes purchases and makes payment. Deffered payment means that one can pay later when one does not have money to pay yet.

Therefore, the answer is A.