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slamgirl [31]
3 years ago
11

Everyone in Bananatown loves bananas! In fact, sometimes they are willing to take them as a form of payment for goods and servic

es instead of dollars. Bill, a tourist, sees an opportunity to make some money. He buys up all of the bananas in Banana town and goes home. He stores them in the trunk of his car for 6 months. Bill then goes back to Bananatown, knowing that the people there will be excited to purchase bananas from him. He opens his trunk and realizes that this plan was not well thought out, as all the bananas are rotten mush. How are bananas successful as a form of money in Bananatown, as described in the scenario?
It is impossible to use bananas as currency in Bananatown.
B) Bananas function as a medium of exchange and store of value, but not as a unit of account.
C) Bananas function as a store of value and a unit of account, but not as a medium of exchange.
Eliminate
D) Bananas shouldn't be used as a store of value, but they can be used as a unit of account and medium of exchange in Bananatown.
Social Studies
2 answers:
MatroZZZ [7]3 years ago
7 0

D) Bananas shouldn't be used as a store of value, but they can be used as a unit of account and medium of exchange in Bananatown.

Neko [114]3 years ago
4 0
Bananas function as a medium of exchange and store of value, but not as a unit of account
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