CBSE 2014 Class 12 Economics Outside Delhi Set-1
© examsiri.com
Question : 7 of 19
Marks:
+1,
-0
Explain the significance of the 'Unit of Account' function of money.
Solution:
Money serves as a common medium or unit of value. Unit of account function of money means that money can be used for quoting prices or recording transactions. Money has provided a common yardstick to measure all these different units in a common denomination known as price. This removes the difficulty, of keeping accounts and makes possible the existence of financial institutions.
© examsiri.com
Go to Question: