If the prices of goods and services were expressed in terms of carved wooden beads, then the carved wooden beads would be serving as a
A) medium of exchange.
B) store of value.
C) unit of account.
D) mechanism for transforming present purchases into future purchases.

Question

Quizplus · Accepted Answer

The carved wooden beads would serve as a unit of account because they provide a common way to measure and compare the value of goods and services. However, they would not necessarily serve as a medium of exchange or store of value, as they may not be universally accepted as a means of payment or a reliable way to hold wealth. They would also not serve as a mechanism for transforming present purchases into future purchases, as this is typically done through financial instruments like loans or investments.

If the Prices of Goods and Services Were Expressed in Terms