Topic summary
Monetary Unit
Extracted from the Wikipedia article Unit of account.
In economics, unit of account, sometimes called currency unit or monetary unit, is a standard unit of measurement of the market value of goods, services, and other transactions. Also known as a measure of relative worth and a standard of deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt. It is one of the functions of money. it is a basis for quoting and bargaining of prices and it is necessary for developing accounting systems.