PRC-3 · Chapter 17 · Question 2 of 20
A shopkeeper prices a loaf of bread at Rs. 100, a bottle of milk at Rs. 150, and a dozen eggs at Rs. 200. By expressing the value of wildly different items in a single standard metric, money is performing which core function?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Unit of account (measure of value)
Explanation
Money acts as a unit of account, providing a common denominator to price and compare the relative value of entirely different goods and services.
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