| 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 is a unit of service economy that prices the goods
B) It is an exchange economy that evaluates the services
C) It is a credit economy meets different needs of the people
D) It is a notional economy that depends on the market conditions
Correct Answer: C
Solution :
(c)| 1. Criteria reasoning |
| 2. Inference |
| 3. Object and Function Analogy |
| This stems from the idea that the modern economy is not only an exchange economy but a credit economy which meets various demands of the various consumers or public. |
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