What is the unit of account function of money quizlet?
As a unit of account, money is used to express the value of goods and services. This function of money promotes economic efficiency and minimizes transaction costs by eliminating the need of expressing the price of each commodity in terms of every other commodity.Click to see full answer. Herein, what is the unit of account…
As a unit of account, money is used to express the value of goods and services. This function of money promotes economic efficiency and minimizes transaction costs by eliminating the need of expressing the price of each commodity in terms of every other commodity.Click to see full answer. Herein, what is the unit of account function of money?A unit of account is something that can be used to value goods and services, record debts, and make calculations. Since money can serve as a unit of account, it is divisible without losing its value, and is also fungible and countable.One may also ask, which of the following are functions of money? Money serves four basic functions: it is a unit of account, it’s a store of value, it is a medium of exchange and finally, it is a standard of deferred payment. Also Know, what is the medium of exchange function of money quizlet? That money is widely accepted in exchange for goods and services. Commodity money includes such things as paper currency and travelers checks that have no commodity value in and of themselves, but which can be used to purchase commodities.What are the 3 functions of money? Functions of Money Money has three primary functions. It is a medium of exchange, a unit of account, and a store of value: Medium of Exchange: When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange.
