Question

Indicate which of the functions of money (a medium of exchange, a unit of account, and a store of value) each of the following performs in the U.S. economy.
Medium of Exchange Unit of Account Store of Value

Plastic credit card
House
Japanese yen
U.S. dollar bill

Answer 1

Answer:

• Credit Card : Medium of Exchange , Standard of Deferred Payment
• Japanese Yen : Medium of Exchange
• US Dollar Bill : Standard of Deferred Payment
• House : Not Money ; Real Estate serving as Store of Valye

Explanation:

Money is something which is generally accepted as a medium of exchange, unit of value, store of value & standard of deferred payment.

• Medium of Exchange : For transferring purchasing power between buyers & sellers
• Unit of Value : As a common denomination in which all things value is measured
• Store of Value : For preserving wealth in economic, stable value.
• Standard of Deferred Payment : As a tool for delayed payments settlements

Plastic Credit Card serves as a Medium of Exchange, as it helps in transactions. It is also a form of standard of deferred payment, as the bank collects spent amount from credit card by the customer later

Japanese Yen acts as a Medium of Exchange, as it helps settle transactions.

US Dollar Bill implies that the settlement is to be done later. So, it is a standard of deferred payment.

House is not money. Its just a real estate asset, bought by money. It acts as a store of value,  as preserve for wealth