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Money and Banking — Economics STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEconomicsMoney and Banking4 Marks
Question
Explain the 'Unit of account' function of money. How has it solved the related problem created by barter?
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Answer

Unit of account function of money means that money can be used for quoting prices or recording transactions. This removes the difficulty of keeping accounts and makes possible the existence of financial institutions.

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