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1. The roles of money
Brian just graduated from college and is now in the market for a new car. He has saved up $4,000 for a down payment. He has the decision narrowed down to a Cord and a Fevvy. The Cord is priced at $23,599, and the Fevvy is priced at $18,999. After agonizing over the decision, he decides to buy the Fevvy. He writes the dealership a check for $4,000 and takes out a loan for the remainder of the purchase price.
Identify what role money plays in each of the following parts of the story.
Hint: Select each role only once.
Role of Money
Medium of Exchange
Unit of Account
Store of Value
Brian writes a check for $4,000.
Brian can easily determine that the price of the Cord is more than the price of the Fevvy.
Brian has saved $4,000 in his checking account.