Raphael wants to purchase a new computer and go to the Caribbean for spring brea
ID: 1115623 • Letter: R
Question
Raphael wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,199, and the vacation is priced at $900. He has only $1,574 in his checking account, so he cannot afford to purchase both. After much thought, Raphael buys the computer and writes a check for $1,199.
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
Role of Money
Medium of Exchange
Unit of Account
Store of Value
Raphael has $1,574 in his checking account. Raphael writes a check for $1,199. Raphael can easily determine that the price of the computer is more than the price of the vacation.Explanation / Answer
a) Store of value because $1574 in account which are savings for him and hence store of value
b) Medium of Exchange because Ralph can use it to make purchases.
c) Unit of account by comparing the cost of both options raphael used it to determine unit if account .
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