BANKING AFFAIRS

Detailed explanation-1: -If you write a check on a bank to purchase a used Honda Civic, you are using money primarily as a store of value. a unit of account. an economic investment.

Detailed explanation-2: -First, money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. Instead of exchanging accounting services for shoes, the accountant now exchanges accounting services for money. This money is then used to buy shoes.

Detailed explanation-3: -Paper money is fiat money because it has been declared by government as a means of exchange. If a person buries his money in his backyard, he is using money as a medium of exchange.

Detailed explanation-4: -One of the functions of money in an economy is that it serves as a store of value. A store of value is something that people use to transfer purchasing power from the present to the future.

Detailed explanation-5: -The Functions of Money Money serves three basic functions. By definition, it is a medium of exchange. It also serves as a unit of account and as a store of value-as the “mack” did in Lompoc.