How does money function as a unit of account?
A)Money has intrinsic worth as a commodity.
B)Money is convertible into commodities that have intrinsic worth.
C)The prices of all goods and services are measured in terms of money.
D)Things that function as money can do so because people know there is a standard of value that ultimately backs the money even if it is only faith.
E)Bank accounts make it easy for people to store their wealth.

Question

How does money function as a unit of account?​
A)Money has intrinsic worth as a commodity.
B)Money is convertible into commodities that have intrinsic worth.
C)The prices of all goods and services are measured in terms of money.
D)Things that function as money can do so because people know there is a standard of value that ultimately backs the money even if it is only faith.
E)Bank accounts make it easy for people to store their wealth.

Quizplus · Accepted Answer

Money functions as a unit of account because the prices of goods and services are measured in terms of money. This means that money serves as a standard of value that enables people to compare the prices of different goods and services. For example, if a loaf of bread costs $2 and a gallon of milk costs $3, we can compare the prices of these items because they are both measured in terms of money. Without money as a unit of account, it would be difficult to compare the relative prices of different goods and services.

How Does Money Function as a Unit of Account?​

How Does Money Function as a Unit of Account?