A $20 price tag on a sweater in a department store is an example of money serving as a
A)medium of exchange.
B)unit of accounting.
C)store of value.
D)standard of deferred value.

Question

Quizplus · Accepted Answer

The $20 price tag on the sweater represents a specific amount in dollars and serves as a standard for measuring the value of the sweater. This demonstrates the use of money as a unit of accounting. A medium of exchange refers to the use of money to buy and sell goods and services, not just as a representation of value. A store of value refers to the ability of money (or other assets) to hold value over time. A standard of deferred value refers to the ability of money to retain purchasing power in the future, regardless of inflation or other economic changes. None of these concepts are directly illustrated by a price tag on a sweater.

A $20 Price Tag on a Sweater in a Department