ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Answer and Explanation: The unit of account function of money refers to the ability of money to price different goods and services in a single metric. This allows people to focus on a single metric which is easier than trying to compare every good in an economy.

Detailed explanation-2: -Lesson Summary Money acts as a standard of value by making it easy for people to compare the value of different goods and services according to a uniform reference point. Money can also be used as a store of value to make transactions more efficient.

Detailed explanation-3: -Money’s property as a store of value facilitates a transfer of purchasing power over time. Another defining property of money is its use as a medium of exchange, which means that money is a carrier of a store of value between independent transactions.

Detailed explanation-4: -ii) Measure of value: The value of all goods and services is expressed in terms of money.

Detailed explanation-5: -To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.