Purchasing groceries using a debit card best exemplifies money serving as a:

• A. medium of exchange
• B. unit of account
• C. standard of deferred payment
• D. store of value

Answer: (A)

Verified step by step guidance

1. Understand the concept of 'medium of exchange': Money serves as a medium of exchange when it is used to facilitate transactions for goods and services, such as purchasing groceries.
2. Review the concept of 'unit of account': Money acts as a unit of account when it provides a standard measure for pricing goods and services, but this is not the primary function in the given scenario.
3. Examine the concept of 'standard of deferred payment': Money serves as a standard of deferred payment when it is used to settle debts or obligations in the future, which does not apply to immediate grocery purchases.
4. Analyze the concept of 'store of value': Money acts as a store of value when it retains purchasing power over time, but this is not the primary function in the context of using a debit card for groceries.
5. Conclude that purchasing groceries using a debit card best exemplifies money serving as a 'medium of exchange,' as it directly facilitates the transaction for goods.