Role of money medium of exchange

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Reference no: EM133615896

Larry is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local tacqueria that sells individual tacos for $4.99 and two tacos for $7.99. Larry decides that he's hungry enough to eat two tacos, and selects that meal. He pays with a $10 bill and tells the cashier to keep the change. 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 Larry accumulates money in his savings account for future purchases. Larry buys his lunch with a $10 bill. Larry can easily determine that the two tacos, while twice as much food as the one taco, is priced at less than twice as much.

Reference no: EM133615896

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