A $10,000 price tag on a new car is an example of money as
A)a medium of exchange.
B)a unit of account.
C)a store of value.
D)a time deposit.

Question

Quizplus · Accepted Answer

A $10,000 price tag on a new car represents the value of the car in terms of money. Therefore, this is an example of money functioning as a unit of account, which means that money serves as a common measure of the value of goods and services being exchanged. Money as a medium of exchange refers to using money to facilitate transactions between buyers and sellers. Money as a store of value refers to the ability of money to hold its value over time, which may not apply to a new car as its value is likely to depreciate over time. A time deposit refers to a type of savings account with a fixed interest rate and a specific maturity date, which is not relevant in this context.

A $10,000 Price Tag on a New Car Is an Example