BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Purchasing a toy for $8.99
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Lending a friend $25.00
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Opening a savings account at a bank
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Checking the price of a camera at several stores before buying it at the lowest price
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Detailed explanation-1: -A unit of account can be divided so that its component parts will equal the original value. If you divide a dollar into four quarters, the total value of the four quarters still equals a dollar. Likewise, if you cut a bar of gold in half, the two pieces together will equal the same value as the original bar as a whole.
Detailed explanation-2: -Writing a price tag is an example of the unit of account function of money. As a store of value, money is used to store purchasing power between the time income is received and the time it is spent.
Detailed explanation-3: -Money can be defined as the medium of exchange, such as notes, coins, and demand deposits, used to pay for commodities and services.
Detailed explanation-4: -Checkable deposits are not classified as money because they fail to provide a store of value. By functioning as a unit of account, money provides a common measurement of the relative value of goods and services.