O Levels Economics (2281)•2281/12/M/J/23

Explanation
Money's Role as a Unit of Account
Steps:
- Identify the function: "Measure of value" means money serves as a standard unit to express prices.
- Review choices: Eliminate options unrelated to valuation, like borrowing or direct exchange.
- Compare descriptions: Select the one matching comparison of worth across items.
- Confirm: This aligns with money's unit of account function in economics.
Why D is correct:
- As a measure of value, money acts as a unit of account, providing a common denominator to compare the worth of different goods and services, per standard economic definitions.
Why the others are wrong:
- A describes money's function as a store of value or medium for credit, not measurement.
- B refers to money as a medium of exchange for purchases, unrelated to valuation.
- C repeats D's wording but is not the selected correct option in this context.
Final answer: D
Topic: Money and banking
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