When we say that money serves as a unit of account, we mean that it is:
A)a way to keep some of our wealth in a readily spendable form for future use.
B)a means of payment.
C)a monetary unit for measuring and comparing the relative values of goods.
D)declared as legal tender by the government.

Question

Quizplus · Accepted Answer

Money serves as a unit of account because it is a monetary unit used for measuring and comparing the relative values of goods. For example, we can compare the price of a loaf of bread to the price of a gallon of milk in dollars, rather than having to compare them directly. It allows for easier transactions and economic calculations.

When We Say That Money Serves as a Unit of Account