Suppose prices are quoted in dollars and transactions are conducted in pesos. The dollar serves as a
A) medium of exchange.
B) unit of account.
C) store of value.
D) all of the above

Question

Quizplus · Accepted Answer

The dollar serves as a unit of account in this scenario, as prices are quoted in dollars. It is not functioning as a medium of exchange or store of value, as those transactions are conducted in pesos.

Suppose Prices Are Quoted in Dollars and Transactions Are Conducted