Money's Unit of Account Function Measures Value

Steps:

• Recall the four primary functions of money: medium of exchange, unit of account, store of value, and standard of deferred payment.
• Identify that measuring value involves expressing prices and worth in a common scale.
• Match this to the option that defines a consistent numerical standard for valuation.
• Confirm by eliminating unrelated functions like trading or saving.

Why D is correct:

• The unit of account function establishes a common measure (e.g., dollars) to express the value of goods, services, and debts, as defined in economic theory.

Why the others are wrong:

• A enables transactions by serving as payment, not valuation.
• B settles future obligations, unrelated to measuring current value.
• C preserves purchasing power over time, not a measure of value.

Final answer: D