| Direction: Study the following passage carefully and answer the questions given below: |
| A unit of account is an agreed measure for stating the prices of goods and services. Money also serves as a store of value and it holds value over time. Although money is not the only thing that stores values as houses and land also fulfills this function, however, money is different as it can be liquated immediately for other commodities. This stems from the idea that the modern economy is not only an exchange economy but a credit economy. Since, in reality different people want different things at different times which give more weight to liquidity of money. |
A) It serves as a store of value for the services
B) It has credit economy and exchange values
C) It has notional value for the goods and services
D) It has high liquidity and can be exchanged easily
Correct Answer: C
Solution :
(c)| 1. Deductive reasoning |
| 2. Assumption |
| 3. Degrees of a Characteristic Analogy |
| The money is not the only thing that stores values as houses and land also fulfills this function, however, money is different as it can be liquated or exchanged immediately for other commodities and services. |
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