Money serves as a unit of account when
A) it is used to purchase goods and services.
B) there is direct trade of goods and services.
C) it is a basic measure of economic value.
D) it is a means of holding wealth.
E) there is a double coincidence of wants.

Question

Quizplus · Accepted Answer

Money serves as a unit of account when it is a basic measure of economic value. This means that money is a standard unit that is used to compare the values of different goods and services, making it easier to conduct transactions and calculate prices. Money as a unit of account is essential in modern economies where people can buy and sell a wide range of goods and services.

Money Serves as a Unit of Account When