When a fisherman records the value of a day's catch in terms of an equivalent number of abalones,abalones serve as
A) the medium of exchange.
B) fiat money.
C) a unit of account.
D) a store of value.
E) currency.

Question

Quizplus · Accepted Answer

Abalones are being used as a unit of account, as they are being used to measure the value of the fisherman's catch. They do not serve as a medium of exchange (A) or currency (E) as they are not being used to directly exchange for goods and services. Abalones also do not serve as fiat money (B) as they do not have a government backing or legal tender status. They also do not serve as a store of value (D) as they can perish and lose their value over time.

When a Fisherman Records the Value of a Day's Catch