Question

In 2010, Tara used $50,000.00 from funds she had invested in certificates of deposit as a down payment to buy a house. What function did this portion of her investments serve when she made the down payment? unit of exchange. medium of exchange. store of value. unit of account.

Answer 1

This investment served the purpose of a medium of exchange and store of value.

Explanation:

Tara used $50,000 from her investment in certificates of deposit as a down payment to buy a house.

Since this investment stored value for future use, it performed the function of a store of value.

The investment then was used to make a down payment for a house, so it performed the function of a medium of exchange.