How Does Money Function as a Unit of Account?​

question 86

Multiple Choice

How does money function as a unit of account?​

• A)Money has intrinsic worth as a commodity.
• B)Money is convertible into commodities that have intrinsic worth.
• C)The prices of all goods and services are measured in terms of money.
• D)Things that function as money can do so because people know there is a standard of value that ultimately backs the money even if it is only faith.
• E)Bank accounts make it easy for people to store their wealth.

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Definitions:

Group Membership

The association or involvement of an individual in a social, professional, or other types of groups, which can influence their identity, beliefs, and behaviors.

Expected Value

A calculation in probability theory that summarizes the average outcome when the future involves scenarios that may or may not happen.

Fair Coin

A term describing a coin that has an equal probability of landing on heads or tails when flipped.

Expected Value Theory

A concept in probability and statistics that calculates the anticipated value of an investment or decision, factoring in all possible outcomes and their probabilities.