CFA Practice Question

There are 341 practice questions for this study session.

CFA Practice Question

Money serves as a unit of account because ______
A. its value is preserved between transactions.
B. prices are quoted in terms of money.
C. it eliminates the problem of a double coincidence of wants and thus can be used for exchanges.
Explanation: Money serves as a unit of account because prices are quoted in terms of money. A pizza, for example, costs $3.

User Contributed Comments 1

User Comment
george2006 Money might not preserve its value between transactions during which inflations occurs.
All prices are quoted in in terms of some money.
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