Unit of account in economics allows a somewhat meaningful interpretation of prices, costs, and profits, so that an entity can monitor its own performance. It allows shareholders to make sense of its past performance and have an idea of its future profitability. The use of money, as a relatively stable unit of measure, can tend to drive market economies toward efficiency. Historically, prices were often given in a dominant currency used as a unit of account, but transa… WebMoney serves as a unit of account when a. sellers are willing to accept it in exchange for goods or services. b. it can be easily stored and used for transactions in the future. c. …
Solved Which of the following does NOT describe a function - Chegg
WebJan 16, 2024 · Unit of account refers to a money function that provides a general measurement of value for goods and services. With money, we can know that the price of … WebFeb 24, 2006 · First, money is a store of value, which means that it holds its value over time. You can put money in a drawer today and spend it next year, when it will buy … rayfire2016
Lesson summary: definition, measurement, and functions of money
http://pressbooks-dev.oer.hawaii.edu/principlesofeconomics/chapter/27-1-defining-money-by-its-functions/ WebDec 13, 2024 · Money performs four main functions in today’s society. It mainly serves as: A medium of exchange A standard of deferred payment A store of wealth A measure of value Barter Economy In theory, people are … Webd. fiat money and function as a unit of account. commodity money and function as a unit of account. Which of the following is not included in M1? a. currency b. demand deposits c. traveler’s checks d. credit cards credit cards Derek decides to forego a major appliance purchase and save the money. rayfire 2014