Which of the following is an example of money functioning as a unit of account?
A) Your writing a check at Target to pay for new clothes.
B) Bank of America charging 7 percent on an auto loan.
C) eBay using PayPal as a method of payment.
D) Pepsi charging $1 for a can of soda.

Question

Quizplus · Accepted Answer

Pepsi charging $1 for a can of soda is an example of money functioning as a unit of account because it is being used as a standard measure of the value of goods and services. The price of the soda is denominated in dollars, which is the unit of account in this transaction.

Which of the Following Is an Example of Money Functioning