ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What makes money a unit of account is that it fulfills the three conditions of being divisible, fungible, and countable or measurable.

Detailed explanation-2: -Due to money’s use as a medium of exchange for buying and selling and as a value indicator for all kinds of goods and services, money can be used as a unit of account. That means money can keep track of changes in the value of items over time and multiple transactions.

Detailed explanation-3: -A store of value is essentially an asset, commodity, or currency that can be saved, retrieved, and exchanged in the future without deteriorating in value.

Detailed explanation-4: -Unit of Account: Unit of account means that the value of each good or service is measured in standard monetary units. The main difficulty that arose in the barter system was deciding the rate at which an exchange had to be carried out.