Which function of money eliminates the need for multiple prices for each good as in a barter system?
A) store of value
B) standard of deferred payment
C) unit of account
D) valuable relative to its weight

Question

Quizplus · Accepted Answer

The unit of account function of money eliminates the need for multiple prices for each good because it provides a common measure of value for goods and services. In a barter system, without a common measure of value, different goods and services would have to be exchanged directly for one another, making it difficult to compare and negotiate relative values.

Which Function of Money Eliminates the Need for Multiple Prices