A customer buys a pair of shoes for $15 and pays with a $20 bill. The cashier does not have change and therefore runs out to the bank next door. The bank teller gives the cashier a $10 bill and two $5 bills. The cashier goes back to the store and gives the customer his shoes and $5 change.
After the customer leaves, the bank teller comes into the store and informs the cashier that the $20 bill was a counterfeit and demands payment from the salesman. The salesman agrees that the $20 bill is worthless and repays the teller with a good $20 bill.
How much money did the shoe store lose in these transactions:
- CORRECT!
The bank teller broke even, since she gave the cashier a total of $20 and received one good $20 bill, so her role can be ignored.
The customer started with nothing but a worthless $20 bill, but walked out with the $15 shoes and $5 change. His gain was worth a total of $20.
The customer's gain is what the shoe store lost. Since the customer gained the shoes plus $5, the store in turn lost the shoes plus $5.