Question

Unit of account is the function of money: that provides a common measurement of the relative value of goods and services. that shows the acceptability of money in exchange for goods and services. that shows the portability of money. that shows the ability of money to hold value over time.

Answer 1

a common measurement of the relative value of goods and services.

Step-by-step explanation:

Money has three functions. they are :

1. Medium of exchange : this shows the acceptability of money in exchange for goods and services.

2. Store of value : that shows the ability of money to hold value over time.

3. Unit of account : a common measurement of the relative value of goods and services. money serves a means by which one can measure the value of goods and services. for example, if we are told the price of a shoe is $1,000 and the price of another shoe is $50. We know that the $1,000 is relatively more valuable when compared to the $50 shoes.