Question

You put $1,000 from your birthday cash in your college savings account. This statement best illustrates money used as a

a) store of value.

b) medium of exchange.

c) unit of account.

d) liquid asset.

e) liability.

Answer 1

a) store of value.

Step-by-step explanation:

The store of value represents the security of an asset by saving, retrieving or exchanging at a later value. Like gold and other precious goods are kept on locker so that they are safe.

The medium of exchange is a medium through which the goods are exchanged either by sale motive or purchase motive between the parties involved.

The unit of account determines the measurement of a unit i.e currency, dollars, etc

The liquid asset and the liabilities are the parts of the balance sheet.