Question

When money is used to compare the relative price of a burrito and a taco, money is being used as a

A. measurement of inflation.
B. unit of account.
C. medium of exchange.
D. store of value. Etoken of bartering.

Answer 1

B) unit of account

Step-by-step explanation:

The main functions of money are:

• Medium of exchange : money is widely accepted and used to exchange goods or services
• Unit of account : money serves as a basis to compare the value of goods or services
• Store of value : money can be saved since it keeps it value
• Standard for deferred payments: you can borrow money and pay it back at a future date

Answer 2

Answer: B) unit of Account

Explanation:A unit of account in financial accounting refers to the words that are used to describe the specific assets and liabilities that are reported in financial statements rather than the units used to measure them. Unit of account in economics allows a somewhat meaningful interpretation of prices, costs, and profits, so that an entity can monitor its own performance. It allows shareholders to make sense of its past performance and have an idea of its future profitability.