People use money as a unit of account when they:
A) hold money to transfer purchasing power into the future.
B) use money as a measure of economic transactions.
C) use money to buy goods and services.
D) hold money to gain power and esteem.

Question

Quizplus · Accepted Answer

People use money as a unit of account to measure economic transactions, such as buying and selling goods and services. Holding money for future purchasing power (A) is using money as a store of value, using money to buy goods and services (C) is using it as a medium of exchange, and holding money for power and esteem (D) is not a typical function of money.

People Use Money as a Unit of Account When They