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:

Medical Costs

The expenses associated with healthcare services, including diagnosis, treatment, medication, and hospitalization.

Chronic Conditions

Long-lasting medical conditions that are persistent and have effects that can be controlled but not necessarily cured.

Health Care Outcomes

The results of healthcare interventions, measured by factors like patient satisfaction, health improvements, and mortality rates.

Expenditures

The total amount of money spent on goods, services, and various needs or activities.