Question

Kenji wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacation is priced at $750. He has only $1,537 in his checking account, so he cannot afford to purchase both. After much thought, Kenji buys the computer and writes a check for $1,299.
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
Kenji has $1,537 in his checking account.
Kenji writes a check for $1,299.
Kenji can easily determine that the price of the computer is more than the price of the vacation.
Continue without saving

Answer 1

Answer and Explanation:

The classification is as follows;

1. Since kenji has the amount of $1,537 in his checking account that means he have the storing of the value as the amount has been stored

2 Since kenji writes the check of amount $1,299 that means it is the medium of exchange

3 And, in the last case in which the computer price is greater than the vacation price so it is the unit of account as here the comparsion is to be made