Read the following statements about Money.
A. Money also acts as a convenient unit of account.
B. The value of all goods and services can be expressed in monetary units.
Identify the CORRECT statement/statements.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Both A and B.
- Statement A emphasises how money is a practical unit of account that facilitates comparing the costs of various goods and services. The worth of all commodities and services may be stated in monetary units.
- Statement B highlights, enabling simple pricing and transactions. When taken as a whole, they demonstrate the basic functions of money in an economy.