1. Johnny washes Mrs. Smith s car. She offers to pay Johnny with cookies but Johnny prefers cash.
A. Measure of Value
B. Medium of Exchange
c. Store of Value
2. Johnny puts the money he earns from washing cars under his mattress. He will spend it later.
A. Measure of Value
B. Medium of Exchange
c. Store of Value
3. Johnny has $30. He knows he can either buy one pair of jeans or two CDs with that money.
A. Measure of Value
B. Medium of Exchange
c. Store of Value
1. B
2. C
3. A
I need help in determining if these are right.
I agree with your answers.
Your answers are incorrect. Let me explain how to determine the correct answers for each question:
1. Johnny washes Mrs. Smith's car and prefers to be paid in cash instead of cookies. In this scenario, the function of money being represented is the medium of exchange. Money serves as a medium through which goods and services can be traded or exchanged, making option B the correct answer.
2. Johnny puts the money he earns from washing cars under his mattress to spend it later. This action reflects the function of money as a store of value. Money can be stored and retained for future use without losing its purchasing power, making option C the correct answer.
3. Johnny has $30 and is considering buying either one pair of jeans or two CDs with that money. In this scenario, the function of money being represented is a measure of value. Money serves as a standard measure that allows us to compare the value of different goods and services, making option A the correct answer.
So, the correct answers are:
1. B (Medium of Exchange)
2. C (Store of Value)
3. A (Measure of Value)