Crunch Hardtack wants to go on vacation so he visits his local travel agent and after looking at all of the possible places to visit he decides on two weeks in Antarctica. He pays the travel agent the $5 it cost to visit Antarctica and rushes home to pack his suntan lotion and bathing suit. This is money acting as.
Crunch Hardtack wants to go on vacation so he visits his local travel agent and after looking at all of the possible places to visit he decides on two weeks in Antarctica. He pays the travel agent the $5 it cost to visit Antarctica and rushes home to pack his suntan lotion and bathing suit. This is money acting as.
Here the cost paid by him to the travel agent is the fee for the service rendered by the agent which depends upon the type of reservation done, the place of destination, type of airline, etc which generates revenue of the agent . These fees help the travel agencies to run and make profit for the long-term. And it is evident that the maximum revenues of the travel agencies are generated through rendering such services.
Therefore this money paid here is acting as a service fee to the travel agent paid by the Crunch Hardtack.
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