Question: Which of the following identifies the unit of Account function of money?
Options:
Money is a convenient means of measurement.
Money facilitates the exchange of goods and services.
Money allows the postponement of consumption.
Money provides perfect liquidity.
🔑Key Points:
A unit of account would be anything that can be used to compute, record debts, and valuable commodities and services. This is a measure of value.
There is no standard unit of measurement for products and services in the barter system that can be used to define exchange ratios between goods and services.
According to J. R. Hicks, the gross national product is a collection of goods and services reduced to a common basis by being measured in terms of money.
A unit of account would be anything that can be used to compute, record debts, and valuable commodities and services. This is a measure of value.
There is no standard unit of measurement for products and services in the barter system that can be used to define exchange ratios between goods and services.
According to J. R. Hicks, the gross national product is a collection of goods and services reduced to a common basis by being measured in terms of money.