29.9k views
1 vote
When money serves as a common denominator for measuring the exchange rates among goods and services, it performs as a

1 Answer

6 votes

Answer:

Standard of value.

Step-by-step explanation:

When money serves as a common denominator for measuring the exchange rates among goods and services, it performs as a standard of value.

Standard of value is an agreed-upon worth for a transaction in a country's medium of exchange, such as the U.S. dollar or Mexican peso. A standard of value allows all merchants and economic entities to set uniform prices for goods and services

User Jonathan Sayce
by
8.4k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.