When money is used to express the value of goods and services, it is functioning as a
A) medium of exchange.
B) store of value.
C) unit of account.
D) store of purchasing power.

Question

Quizplus · Accepted Answer

When money is used to express the value of goods and services, it is functioning as a unit of account. This means that money is used as a common standard of measurement for the value of goods and services, allowing for easy comparison and exchange. While money can also function as a medium of exchange and store of value, these roles do not specifically relate to the expression of value. A "store of purchasing power" is not a commonly recognized function of money.

When Money Is Used to Express the Value of Goods