Joan Begins the Month with $100 in Her Checking Account

question 293

Multiple Choice

Joan begins the month with $100 in her checking account. When she receives a paycheck for $1,200 on the 5th of the month, she puts $1,080 in her checking account and $120 in her savings account. During the month, she spends $550 on rent and utilities, $30 on household items, $10 on a T-shirt, and $350 on food, leaving a balance of $240 in her checking account. Based on the given information, which statement is NOT true?

• A) The $120 in savings is primarily functioning as a store of value.
• B) The $940 of purchases represents money functioning as a medium of exchange.
• C) The $10 price tag on the T-shirt is an example of money as a unit of account.
• D) After Joan deposits her paycheck (before any expenditures), her accounts contribute $1,300 to M1.

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Definitions:

Existing Schema

A cognitive framework or concept that helps organize and interpret information.

Identity Assimilation

A psychological process where individuals integrate their new experiences into their existing self-concept, often modifying it to maintain a consistent identity.

Identity Formation

The process through which individuals develop a distinct personality and sense of self, often occurring during adolescence.

Psychological Turning Point

A moment or event in an individual's life that results in significant change in their personality, behavior, or outlook.