Suppose that transactions are conducted in pesos and prices are quoted in dollars. In this case the peso is used primarily as a
A)medium of exchange and unit of account.
B)unit of account.
C)medium of exchange.
D)unit of account and store of value.
E)store of value.

Question

Quizplus · Accepted Answer

The peso is primarily used as a medium of exchange in this scenario because it is the currency used to conduct transactions, even though prices are quoted in dollars. The unit of account, in this case, would be the dollar since prices are quoted in dollars, indicating the value of goods and services.

Suppose That Transactions Are Conducted in Pesos and Prices Are