Checkpoint week 6
In this assignment I will talk about money. I will describe the functions of the following. First I will describe how money acts as a unit of account, medium of exchange and, finally discuss how money is used for a store value. The last thing I will do is put these functions of money into examples that I use on a daily basis. I understand the acts as a unit of account to be sort of like a measurement tape or yard to where you post price tags and record what you owe. We use what money we have to spend for measurements instead of inches. I understood the example that the book gave me it was a good one. The example that I will use is video cameras. Video Cameras cost $50 for a pack of six. In measurement that would be 5/10 of the dollar. The other example would be birthday card. The birthday card cost $5.00 you would spend 1/10. You would say you could buy 10 birthday cards for one video camera. Another example of this would be a school loan. You would use this by seeing how much your repayments of the loan would be after finishing school this would be measured by dollars not goods or services. Second thing that I will describe the medium of exchange. The medium of exchange is where you buy something from the store by the exchange of money from you to the teller. Example of this would be you are confident you have the money to purchase a television. You enter Walmart with $300 dollars when you find the television you give the teller the Three hundred dollars that is when you use the medium of exchange because you exchange money from one person to another. Third thing that is going to be discussed is money and the store value. This is where the store owns the item that you are buying and when you transfer it into the customer hands it goes to the future where they own it then. The person selling the item that you are purchasing the item exchanges for service or another asset. Example would be if you bought a camera...
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