You saved $500 in currency in your piggy bank to purchase a new laptop. The $500 you kept in your piggy bank illustrates money's function as a _______. The laptop's price is posted as $500. The $500 price illustrates money's function as a _____. You use the $500 to purchase the laptop. This transaction illustrates money's function as a ______.
A)store of value, medium of exchange, unit of account
B)store of value, unit of account, medium of exchange
C)medium of exchange, unit of account, store of value
D)medium of exchange, store of value, unit of account

Question

Quizplus · Accepted Answer

The $500 saved illustrates money's function as a store of value, preserving purchasing power over time. The laptop's price tag demonstrates money's function as a unit of account, providing a common measure for the value of goods and services. Using the $500 to buy the laptop shows money's role as a medium of exchange, facilitating transactions.

You Saved $500 in Currency in Your Piggy Bank to Purchase