Maria wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacation is priced at $800. She has only $1,574 in her checking account, so she cannot afford to purchase both. After much thought, Maria buys the computer and writes a check for $1,299. 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 Maria can easily determine that the price of the computer is more than the price of the vacation. Maria has $1,574 in her checking account. Maria writes a check for $1,299.

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Business

Diya Daniel

14 January, 03:12

Maria wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacation is priced at $800. She has only $1,574 in her checking account, so she cannot afford to purchase both. After much thought, Maria buys the computer and writes a check for $1,299. 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 Maria can easily determine that the price of the computer is more than the price of the vacation. Maria has $1,574 in her checking account. Maria writes a check for $1,299.

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Janessa · Answer 1

Maria wants to purchase a computer, and she also wants to go on a vacation trip to Caribbean. She has a total of $1574 in her account. She cannot do both the things together, as the cost of doing both exceeds the amount which she has in her account.

So the role which money plays for each scenario is described below:

Maria can easily determine that the price of the computer is more than the price of the vacation = Unit of Account

Maria has $1,574 in her checking account = Store of value

Maria writes a check for $1,299 = Medium of Exchange