Suppose that transactions are conducted in pesos and prices are quoted in dollars.In this case the dollar functions primarily as a
A)store of value.
B)unit of account and store of value.
C)medium of exchange.
D)unit of account.
E)medium of exchange and store of value.

Question

Quizplus · Accepted Answer

The dollar is being used as a unit of account to quote prices, but in terms of transactions, peso is used as the medium of exchange. Therefore, the dollar primarily functions as a unit of account in this case.

Suppose That Transactions Are Conducted in Pesos and Prices Are