Question

Complete the sentences with the correct function of money. Norah walks into her favorite department store, Bullseye, to pick out a new dress. She checks out the price tag and is excited to see that the dress is on sale and is now relatively cheaper than another dress she was considering. Here, money is serving as a ________ .She is especially excited because she has been saving money each week in her piggy bank at home so that she can afford a trip to Florida next summer. Here, money is serving as a _________.She quickly walks to the checkout line where she pays the cashier for her new dress. Here, money is serving as a ________.

Answer 1

Answer: Unit of account

Store of value

Medium of exchange

Explanation: Money has three functions:

Unit of account

Store of value

Medium of exchange

Unit of Account- Money can be used as a measure in determining value of goods and services. Norah compared the price of the dress to determine the dress costs less.

Store of value- money retains it value over periods of time, therefore it can be used to store value. Norah is saving money in a piggy bank.

Medium of exchange - money is used to facilitate transactions: it can be used to exchange for goods and services. Norah exchanged money for a dress.

I hope my answer helps.