Question

What does it mean to be a unit of account

Answer 1

A unit of account in economics is a nominal monetary unit of measure or currency used to value/cost goods, services, assets, liabilities, income, expenses; i.e., any economic item. It is one of three well-known functions of money. It lends meaning to profits, losses, liability, or assets.

Explanation:

Answer 2

Please refer to the explanation.

Explanation:

Essentially, a unit of account is a measurement for value. It may be related to fiat currency, crypto-currencies, or any other instrument that allows us to compare the value of things.

In economics, the term is used to describe one of the major functionalities of money, which is related to its ability to measure the value of a particular property, good, or service. This is what allows us to evaluate a wide range of distinct products and compare then in monetary values, based on a specific currency, such as the US dollar, the British Pound, or the Euro.