Question

Charles 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 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.

a. Van writes a check for $4,000.
b. Van can easily determine that the price Of the Super is more than the price of the Duper.
c. Van has saved $4,000 in his checking account.

Answer 1

Answer and Explanation:

The identification of the role that money plays in each of the following transactions done:

1. In the case when Van write the check so it would be classified as the medium of exchange

2. When van would easily measures the price of the super i.e. higher than the duper price so it would be classfied as the unit of the account

3. And, when van saved the amount of $4,000 in his checking account so it would be classified as the store of the value