Question:

Which of these activities represents the store of value function of money?

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Sam saved $30 per week from his part-time job to buy a new DVD player. He went to three different electronics stores, comparing the prices on various models. He narrowed his choices to a Panasonic model costing $129.99 and a Sony model with a price tag of $139.99. After much consideration, Sam paid the salesperson $139.99 plus tax in $5 bills for the Sony DVD player. He brought his DVD player to his dorm room and he and his roommates watched their favourite movie every day for the rest of the term.

A. Sam saved $30 a week from his part-time job.

B. Sam greatly valued the pleasure of watching his favourite movie on his DVD player every day.

C. Sam gave the salesperson $139.99 in return for the DVD player.

D. Sam found that the Panasonic model cost less than the Sony model.

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2 ANSWERS


  1. B


  2. "A" is right one. Saving money he stored wealth for future use.

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