Question

. If the prices of goods and services were expressed in terms of $20 for a shirt, $100 for a purse, what function of money is being described here?

Answer 1

Answer: unit of account.

Step-by-step explanation:

Money is anything that's generally accepted by the people and used for making purchases. There are different functions of money such as:

• Means of payment

• Store of value

• Unit of account

• Standard for defered payment

If the prices of goods and services were expressed in terms of $20 for a shirt, $100 for a purse, the function of money that is shown here is the unit of account.

Unit of account simply means the measurement of value. This is something through which goods can be valued.