Question

Sean 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. Sean 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 Sean can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. Sean accumulates money in his savings account for future purchases. Sean buys his lunch with a $10 bill.

Answer 1

Answer:

(A)Unit of Account

Sean can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much

(B)Store of Value

Sean accumulates money in his savings account for future purchases

(C)Medium of Exchange

Sean buys his lunch with a $10 bill.

Explanation:

(A) Sean can measure each type of sandwich and compare his options using the price.

(B) Sean bank account is composed of previous earning of Sean which was accumulated over time

(C) Both Sean and the cashier agree to exchange the sandwich, a consumer good, for the $10 currency

they would not agree on a paper wrote by Sean, It needs to be a $10 currency from the Fed.