Answer:
Jeffrey has had a busy day. Today he went to a financial manager to begin planning for his son’s future. He opened a college savings account. This is an example of a STORE OF VALUE. Next, he goes to the store to buy several items. He sees that beef costs $4.99 per pound, while eggs cost $2.50 per dozen. Both are good sources of protein; and the eggs will provide two meals while the beef will only provide one. Jeffrey is comparing each item’s UNIT OF ACCOUNT. At the cashier, he trades $25.09 for the eggs, vegetables, bread, milk, and potato chips. The money in his wallet is used as a MEDIUM OF EXCHANGE.
Explanation:
-The term store of value refers to the function of money, when this is used to transfer purchasing power from the present to the future.
-Unit of account is a monetary unit of non-physical existence (that is, it is not coined) that, in spite of being imaginary (or, rather, thanks to it), is used in commercial transactions and accounting, and measures market value.
The goods on sale in a market are adjusted using a unit of account. In this way the value is decided by the seller and expressed to the buyer. This happens explicitly when dealing with a market that uses currency, but also implicitly when transactions are made through barter.
-A medium of exchange is a means of purchasing goods or services. An exchange can be money, but goods can also be used as an exchange; in such a case it is referred to as barter or payment in kind. In history, cattle, metals, salt and other spices have been used regularly as mediums of exchange.
