ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A
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B
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C
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None of the above
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Detailed explanation-1: -Money as a measure of value, helps in determining the value of goods and services in the economy. Money is taken as the common denominator while measuring the value of goods and services in the economy. Therefore, with the help of this function everything can be measure in a common denominator or unit.
Detailed explanation-2: -Answer: The use of money makes it easier to exchange things because • it is accepted as a medium of exchange. it serves as a unit of value. it solves the problem of double coincidence of wants.
Detailed explanation-3: -ii) Measure of value: The value of all goods and services is expressed in terms of money.
Detailed explanation-4: -First, money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. Instead of exchanging accounting services for shoes, the accountant now exchanges accounting services for money. This money is then used to buy shoes.