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Economics glossary · Policy and the financial sector

Unit of account

What unit of account means in economics, as one of the four functions of money, with an example and a question to test yourself.

Definition
Unit of account
A unit of account is the ruler by which values are measured, so the prices of very different things can be compared in one unit.
Example

Can you think of an example of unit of account?

Test yourself

Can you name the four functions of money?

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