Question

The roles of money Darnell is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Darnell decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keep the change. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Medium of Exchange Unit of Account Store of Value Darnell buys his lunch with a $10 bill. Darnell can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. Darnell accumulates money in his savings account for future purchases. Grade It Now Save

Answer 1

Answer:

In the first case Darnell esteem the merchandise in quite a while of cash so for this situation cash assumes a job as unit of record (Unit of record is something which can be utilized to esteem the products and ventures).  

In the event that Darnell stores the cash to use in future, at that point it very well may be said that Sean is putting away his cash to utilize it in future. So for the second case cash assumes third job for example store of worth.  

In third case Darnell purchased nourishment by taking care of tab of $10 so actually Darnell is trading nourishment with his cash. In third case cash assumes first job that is vehicle of trade.

Answer 2

Answer:

Value Darnell buys his lunch with a $10 bill. MEDIUM OF EXCHANGE

Darnell can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. UNIT OF ACCOUNT

Darnell accumulates money in his savings account for future purchases. STORE OF VALUE

Explanation:

The four functions our roles of money are:

1. unit of account: serves as a common measure of the value of products and services
2. store of value: money is able to hold its value over time, so it can store value  
3. medium of exchange: you are able to buy and sell different products or services using money
4. standard of deferred payment: money enables you to lend or borrow, and interest can be charged on it