Question

Indicate which of the functions of money (a medium of exchange, a unit of account, and...

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. Check all that apply.

Medium of Exchange

Unit of Account

Store of Value
Plastic credit card
House
Mexican peso
Demand deposit

Given your answers to the previous task, indicate whether each of the following is considered money in the U.S. economy.

Money

Yes

No
Plastic credit card
House
Mexican peso
Demand deposit
Business   Economics   
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Homework Answers

Answer #1

Answer & Explanation :-

(i)- Medium of Exchange: It is anything which is used to determine value during the exchange of goods and services.

(ii)- Unit of Account : It is a means for comparing the values of goods and services.

(iii)- Store of Value: It is something that keep it's value, if stored.

Only demand deposit is considered money in US economy because it is used as medium of exchange, it serves as a unit of account and also it serves as a store of value in US economy.

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