ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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store of value
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medium of exchange
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unit of account/standard of value
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None of the above
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Detailed explanation-1: -Function of Money as a Unit of Account One of the most important characteristics of money is that it serves as a unit of account. A unit of account is something that can be used to value goods and services, record debts, and make calculations. In other words, it’s a measurement for value.
Detailed explanation-2: -Money as a medium of exchange enables a person to buy or sell at different points of time. It has separated the acts of sale and purchase. A buyer can buy goods through money, and the seller can sell goods for money.
Detailed explanation-3: -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.
Detailed explanation-4: -A medium of exchange. A standard of deferred payment. A store of wealth. A measure of value. 13-Dec-2022