Joan Begins the Month with $100 in Her Checking Account

question 118

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 uses that paycheck to put $1,000 in her checking account, takes $80 in cash, and deposit $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 accurately describes the function of Joan's money?

• A) The $120 in savings is money functioning as a store of value.
• B) Her expenditures use funds as a medium of exchange but not as a unit of account.
• C) Buying goods and services uses money as a store of value and unit of account.
• D) Depositing money in savings is using it as a medium of exchange.

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Definitions:

United States Senate

The United States Senate is one of the two chambers of the United States Congress, responsible for making and passing federal laws. Each U.S. state is represented by two senators, regardless of its population size, serving staggered six-year terms.

Rejected

Describes something that has been dismissed, refused, or turned down, often after consideration or evaluation.

Ivan Pavlov

Ivan Pavlov was a Russian physiologist best known for discovering classical conditioning, where a neutral stimulus becomes associated with a reflexive response.

Classical Conditioning

A learning process that pairs a naturally occurring stimulus with a previously neutral stimulus, leading to a learned response.