The unit of account function occurs when money serves as a
A) pricing mechanism.
B) means of payment.
C) double coincidence of wants.
D) medium of exchange.

Question

Quizplus · Accepted Answer

The unit of account function of money is when money serves as a widely recognized standard for measuring the value of goods, services, and other assets. It facilitates economic transactions by providing a standard pricing mechanism that makes it easier to compare the relative value of different goods and services. This function is distinct from the other functions of money, such as being a medium of exchange or store of value.

The Unit of Account Function Occurs When Money Serves as a