Betsy enters a roadside cafeteria and orders a medium-sized cappuccino and a chicken burger.She hands over $5 at the cash counter and collects the food.In this example,money serves the function of ________.
A) a medium of exchange
B) a store of value
C) a measure of inflation
D) a means of deferred payment

Question

Quizplus · Accepted Answer

Money serves as a medium of exchange in this scenario as Betsy is using it to purchase goods and services. Store of value refers to the ability of money to hold its purchasing power over time, which is not relevant in this situation. Money as a measure of inflation or means of deferred payment are also not applicable in this scenario.

Betsy Enters a Roadside Cafeteria and Orders a Medium-Sized Cappuccino