Question

Relative to other measuring rods like metres for distance and grams for weight, what is peculiar about money as a unit of account?

Answer 1

While other units such as metres and grams are able to measure specific variables such as length or weight, money can measure almost everything in terms of the value placed by people in the commodity. For example, if we buy 1m cloth and 2 kilograms sugar, these two different commodities require different measuring units, and their conversion is impossible. But money solves this purpose by comparing both commodities on a single yardstick which is the value placed by the economic agents. This function about money is known as the unit of account where different commodities can be compared and exchanged.