CFA Practice Question

There are 581 practice questions for this topic.

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.
You need to log in first to add your comment.