Question

A fast-food restaurant accepts five dollars in cash as payment for three tacos. This is an example of money's role as a: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices medium of exchange. unit of account. store of value. unit of coincidental want.

Answer 1

Answer: Medium of exchange

Explanation: The above case depicts the medium of exchange function of money. Medium of exchange function depicts the ability of the money to be used for transactions involving purchase and sale of goods. Money is the commonly accepted token that one can use for purchase and sale of various goods.

Thus, we can conclude that the exchange of five dollars for three tacos is an example of medium of exchange function of money.