Nick 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. Nick 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 Nick can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. Nick accumulates money in his savings account for future purchases. Nick buys his lunch with a $10 bill.
Nick 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. Nick 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 Nick can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. Nick accumulates money in his savings account for future purchases. Nick buys his lunch with a $10 bill.
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Money And The Banking System
Section: Chapter Questions
Problem 3CQ
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Question
Nick 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. Nick 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
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Medium of Exchange
|
Unit of Account
|
Store of Value
|
|
|---|---|---|---|---|
| Nick can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. |
|
|
|
|
| Nick accumulates money in his savings account for future purchases. |
|
|
|
|
| Nick buys his lunch with a $10 bill. |
|
|
|
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