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:

Mental Models

Representations of how someone understands the world around them, including beliefs, perceptions, and assumptions that influence their thought processes and decisions.

Social Systems

The complex networks of relationships and structures within which individuals interact in society, governed by laws, norms, and cultural practices.

Physical Systems

Entities or structures consisting of physical components that interact according to principles of physics, often analyzed in fields like engineering and mechanics.

Transactive Memory System

A shared system of remembering information among members of a group, which allows them to collectively store, encode, and retrieve knowledge.