As a unit of account, money is used
A) to define prices of all other goods.
B) to pay off future debts.
C) to hold purchasing power over time.
D) to exchange for goods and services.

Question

Quizplus · Accepted Answer

Money is used as a unit of account to define prices of all other goods in the economy. It serves as a common measure for comparing the prices of different goods and services.

Answer: B
 Money can also be used to pay off future debts, such as loans and mortgages, as it represents a store of value that can be used at a later time. However, this is not the primary function of money as a unit of account.

Answer: C
 Money is also used as a store of value, meaning that it can hold purchasing power over time. This allows people to save their money for future purchases or investments. However, this is not the primary function of money as a unit of account.

Answer: D
 Money is used as a medium of exchange to buy and sell goods and services. This is one of the primary functions of money, but it does not necessarily relate to its role as a unit of account.

As a Unit of Account, Money Is Used