Question

Fill in the blanks to complete the passage about one of the three key functions of money. Because money creates a standard_________ it is possible to compare the prices of two goods, which allows people to communicate the_______of the goods in a way that is easily understood. This characteristic of money also enables it to serve as a_____device, or a way to measure accounts and transactions in a consistent manner.

Answer 1

Because money creates a standard unit of account it is possible to compare the prices of two goods, which allows people to communicate the value of the goods in a way that is easily understood. This characteristic of money also enables it to serve as a recording device, or a way to measure accounts and transactions in a consistent manner

Explanation:

• To understand this in a better way money is a medium of exchange between the two parties.

• This becomes possible to compare the prices of the goods which one buys from other.

• It is a store of value of the goods. This is a unit of account that keeps the measure of all the transaction held.

• Money is best defined as with its three main features