1 . The roles of money Gilberto is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Gilberto decides that he's pretty hungry and goes for the whole. 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 Gilberto can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. Gilberto accumulates money in his savings account for future purchases. Gilberto buys his lunch with a $10 bill.

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Explanation:

• Gilberto can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. = Unit of account.

In this case, the sandwich has been valued in terms of money. Therefore, the role played here is the unit of account.

• Gilberto accumulates money in his savings account for future purchases. = Store of value.

The role played by money here is the store of value. This is when money is stored so that it'll be used for future purposes or to generate further wealth.

• Gilberto buys his lunch with a $10 bill = Medium of exchange.

Money plays the role of a medium of exchange here since Gilberto used it in exchange for the food that was bought.

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