Matthew purchases a candy bar with his allowance. This purchase represents using money as
A) a medium of exchange.
B) a store of value.
C) an unit of account.
D) none of the above.

Question

Quizplus · Accepted Answer

Using money as a medium of exchange means exchanging money for goods or services, which is exactly what Matthew is doing when he purchases a candy bar. Money serves as a convenient medium to facilitate this transaction. Money as a store of value refers to the ability to save money for future purchases or investments, which is not relevant in this scenario. Money as a unit of account refers to measuring the value of goods and services in a standardized way, which is not directly relevant to Matthew's candy bar purchase.

Matthew Purchases a Candy Bar with His Allowance