Purchasing common stock by writing a check best exemplifies money serving as a:

Question

Quizplus · Accepted Answer

Money serves as a medium of exchange when it is used to purchase goods and services directly. Writing a check to purchase common stock is an example of money being used as a medium of exchange because the check is used to transfer the funds necessary to purchase the stock. Money does not serve as a store of value in this scenario because the stock itself serves as the store of value. Money is not a unit of account or an index of satisfaction in this situation.

Purchasing Common Stock by Writing a Check Best Exemplifies Money