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:

Customer Service

The support and assistance provided by a company to those people who buy or use its products or services.

Warehouse

A large building where raw materials or manufactured goods are stored before their distribution for sale.

Materials Management

The function responsible for planning, sourcing, moving, and storing materials used in the production of goods and services.

Procurement

The process of obtaining goods or services, often for business purposes, which involves selecting vendors, establishing payment terms, and negotiation contracts.