FREE-RESPONSE QUESTIONS 1. Use the following scenario to answer all parts of the following questions: Diego opens a new checking account in Bank A with $5,000. (a) If Diego uses the debit card that accompanies this account, what function of money does his transaction serve? (b) Diego decides to deposit as much as he can into this account after his initial deposit to purchase a car. What function is his money serving? Explain. (c) Diego sees an advertisement for the car he wants for $8,000. In this scenario, money is serving which purpose? Explain. (e) (d) Diego writes a check against his account for the car. Which measurement of money will he be using for this purchase? After the purchase of his car, Diego has $2,000 left over, $1,000 of which he decides to put into a certificate of deposit. What measurement of money is his $1,000 CD a part of?

FREE-RESPONSE QUESTIONS 1. Use the following scenario to answer all parts of the following questions: Diego opens a new checking account in Bank A with $5,000. (a) If Diego uses the debit card that accompanies this account, what function of money does his transaction serve? (b) Diego decides to deposit as much as he can into this account after his initial deposit to purchase a car. What function is his money serving? Explain. (c) Diego sees an advertisement for the car he wants for $8,000. In this scenario, money is serving which purpose? Explain. (e) (d) Diego writes a check against his account for the car. Which measurement of money will he be using for this purchase? After the purchase of his car, Diego has $2,000 left over, $1,000 of which he decides to put into a certificate of deposit. What measurement of money is his $1,000 CD a part of?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter12: Money And Banking

Section: Chapter Questions

Problem 10E

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