Bart is able to buy 50 water balloons with the $5 bill he received for his allowance. This is an example of money as A) fiat money. B) an investment. C) a store of value. D) a medium of exchange.

Question

Kendall Robertson

Social Studies

29 September, 16:08

Bart is able to buy 50 water balloons with the $5 bill he received for his allowance. This is an example of money as A) fiat money. B) an investment. C) a store of value. D) a medium of exchange.

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Answers (2)

Know the Answer?

Natalie Le · Answer 1

d

Explanation:

d

Jacey Meyer · Answer 2

The correct answer would be option D, A medium of exchange.

Explanation:

Bart is able to buy 50 balloons with the 5 dollar bill he received for his allowance. This is an example of a medium of exchange.

Medium of exchange is the intermediary instrument, which must have some recognized value. This intermediary instrument is used to make purchases, sales, or trades of goods or services between two parties.

In our world, we usually use currency as a medium of exchange to make sales, purchases or any type of trades of goods or services.

So when Bart purchases 50 balloons, and gave 5 dollar bill, he is actually using this 5 dollar bill as a medium of exchange to make a purchase.