Which of the following items serve as a unit of account?
I. $100 cash
II. checkable deposits
III. an original Picasso painting
IV. a $1,000 corporate bond that you own
A) I only
B) I and II
C) I, II, and III
D) I, II, and IV
E) I, II, III, and IV

Question

Quizplus · Accepted Answer

A unit of account is an agreed upon measure for stating the prices of goods and services. Cash and checkable deposits both serve as units of account because they are commonly accepted in transactions and have a consistent value. An original Picasso painting and a corporate bond may have value but are not commonly accepted as units of account.

Which of the Following Items Serve as a Unit of Account