The unit of account function of money
A) requires a double coincidence of wants.
B) eliminates the need to value every item in terms of every other item.
C) is the most important function of money.
D) refers to the value of money over time.

Question

Quizplus · Accepted Answer

The unit of account function of money is important as it provides a common measure of the value of goods and services. This eliminates the need for individuals to value every good and service in terms of every other good and service, making exchange activities easier. This function does not require a double coincidence of wants nor does it refer to the value of money over time, although these may be important for other functions of money. Therefore, the correct answer is B.

The Unit of Account Function of Money