PRC-3 · Chapter 17 · Question 7 of 20
A supermarket prices a loaf of bread at Rs. 100 and a bottle of milk at Rs. 150. By allowing completely different goods to be valued using a single, common denominator, money is performing its function as a:
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 universal standard metric to price, value, and compare all economic goods and services.
More Money MCQs
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- Q11A shopkeeper prices a loaf of bread at Rs. 100 and a dozen eggs at Rs. 200. By providing a common denominator to value completely…
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- Q13Modern paper currency has no actual intrinsic value (it is just printed paper), but everyone accepts it because the government declares it…