Money - stores that they desire because they confident that...

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Money The unit of account is the yardstick people use to post prices and record debts. While shopping and purchasing goods you will notice the difference in price between certain goods. I enjoy shopping and buy a lot of clothes and jewelry most of the clothes I buy are most expensive then the jewelry so say if a pair of earrings are five dollars and a sweater is forty dollars. I could say that the price of my sweater is eight earrings however prices are never quoted that way they are always quoted in dollars. A medium of exchange is an item that buyers give to sellers when they purchase goods and services. An example of medium exchange is when you buy a candy bar from the store, the store gives you the candy bar, and you give the store your money. The only way a proper transaction can take place is if there is a medium of exchange. People go to the
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Unformatted text preview: stores that they desire because they confident that the store will accept their money for the items they want. If I go to the salon to get my hair done the stylist will not provide the service unless I provide them with the money to perform the task. A store of value is an item that people can use to transfer purchasing power from the present to the future. When a seller accepts a consumer’s money today in exchange for a good or service, that seller can hold the money and become a buyer of another good or service at another time. I have a cousin that sells all kinds of refurbished electronics that you can purchase at a lower price than the store. He will accept your money for the good but then turns around to use some or all of the money to purchases more goods to sell later. Loretta Campbell 03/17/2011...
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