Which of the following applies to the use of money as a unit of account?
I. A unit of account is an agreed measure for stating the prices of goods and services.
II. Using money as a unit of account creates a simplified pricing system.
III. Economies choose many goods as units of account.
A) I only
B) II only
C) I and II
D) I and III

Question

Quizplus · Accepted Answer

I is correct because money is commonly used as a unit of account in modern economies to facilitate the exchange of goods and services by providing a universally accepted measure of value. 
II is also correct because using money as a unit of account simplifies the pricing system by reducing the need for bartering and enabling price comparison across different goods and services. 
III is incorrect because while there may be multiple goods and services that are commonly priced and traded in an economy, only one unit of account is generally used.

Which of the Following Applies to the Use of Money