Question

Which of the following best illustrates money's use as a unit of account?

		Ann buys clothes from a mall.
		Loan repayments are given in terms of dollars.
		Susan deposits money in her checking account so she can make purchases in the future.
		Robert uses dollars to buy tickets for a concert.

Answer 1

Money has basically three functions

Unit of account

Store ofvalue

Medium of exchange

In the option 1 the money is acting as medium of exchange because Ann buys clothes from the Mall by exchanging with money

Similarly happens in the option d where Robert is buying the concert ticket by money transaction

In option C money is acting as store of value because Susan deposits the money and expected to make future purchases with that money

Only in option B the money is acting as unit of account because it has a standard of unit that is expressed in terms of dollars

So the correct answer here is option B