Question

Which of the following showcases the feature of unit of account?

• A. Something that is generally acceptable in exchange for goods and services
• B. A legally recognized asset that is generally accepted in exchange for goods and services.
• C. Something that circulates and provides a standardized means of evaluating the relative price of goods and services.
• D. The ability of money to command purchasing power in the future

Answer 1

The correct option is C Something that circulates and provides a standardized means of evaluating the relative price of goods and services.

A unit of account in economics is a nominal monetary unit of measure or currency used to value/cost goods, services, assets, liabilities, income, expenses; i.e., any economic item. It is one of three well-known functions of money.