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Medium of exchange or store of value

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Please state which function of money is being used by each of the following activities: Unit of Account, Medium of Exchange or Store of Value.

Please explain the reasoning behind each answer.

(a) Brenda buys a cup of coffee at the local cafe.

(b) Brenda transfers $2,000 from her checking account into her savings account.

(c) Brenda puts up flyers around Chaffey College advertising the selling of her car for $6,000 or best offer.

(d) Brenda reports her wages to the IRS.

2.

(a) Please state the assets that comprise of the money measurement M1.

(b) Please state the assets that comprise of the money measurement M2

3. Explain what impact each of the following actions has on both M1 and M2.

(a) Mary deposits $300 in cash into her Savings Account.

(b) Sam transfers $400 from his Savings Account into his Checking Account.

(c) Chen takes $60 out of his Checking Account and buys a new pair of shoes.

(d) Pak borrows $1,000 in cash from his bank in order to buy a new computer for his business.

Reference no: EM132186171

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