Question

Antonio just graduated from college and is now in the market for a new car. He has saved up $4,000 for a down payment. He's deciding between a Super and a Duper. The Super and a Duper. The Super is priced at $23,599, and the Duper is priced at $18,999. After agonizing over the decision, he decides to buy the Duper. He writes the dealership a check for $4,000 and takes out a loan for the remainder of the purchase price.Identify what role money plays in each of the following parts of the story.Select each role only once.Role of Money Medium of Exchange Unit of Account Store of ValueAntonio writes a check for $4,000 Antonio can easily determine that the price of the super is more than the price of the Duper. Antonio has saved $4,000 in his checking account.

Answer 1

Answer:

Antonio writes a check for $4,000: Medium of exchange;

Antonio can easily determine that the price of the super is more than the price of the Duper: Unit of account

Antonio has saved $4,000 in his checking account: store of value

Explanation:

* Antonio writes a check for $4,000: as he writes the check to car dealer, money in this situation is acted like a medium of exchange, that is, an intermediate instrument that helps to facilitate the transaction between Antonio and car dealer.

* Antonio can easily determine that the price of the Super is more than the price of the Duper: In this situation, money works as a unit of account. As Super takes him more money to own than the Duper, thanks to the money price tag Antonio easily identifies that the Super is more expensive than the Duper.

* Antonio has saved $4,000 in his checking account:: the $4,000 is the amount of purchasing power'value Antonio has had, yet not used; which has been stored in the form of monetary value. So, under this circumstances, money is played a role as store of value.