PRC-3 · Chapter 17 · Question 11 of 20
A shopkeeper prices a loaf of bread at Rs. 100 and a dozen eggs at Rs. 200. By providing a common denominator to value completely different items, money is fulfilling its function as a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Unit of account (measure of value)
Explanation
Money acts as a unit of account, allowing the relative value of entirely different goods to be easily measured and compared.
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