unit of account


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Related to unit of account: Store of value

Unit of Account

A measure of an amount of money. Units of account, for example, divide one dollar into 100 cents or one pound into 100 pence. Units of account are somewhat arbitrary, but are necessary to measure value and price fairly.

unit of account

see MONEY.

unit of account

an attribute of MONEY that enables people to use money to measure and record the value of GOODS and SERVICES and financial transactions. A unit of account may take a physical form, for example CURRENCY, or may be an intangible ‘book-keeping’ asset such as the SPECIAL DRAWING RIGHT and the EUROPEAN CURRENCY UNIT.
References in periodicals archive ?
No lenders use bitcoins as the unit of account for consumer credit, auto loans, or mortgages, and no credit or debit cards are denominated in bitcoins.
We'll still need a store of value, a transaction mechanism and a unit of account.
The idea is that, by providing a better global unit of account whose definition is widely accepted, it will enable others to devise ways to make it a medium of exchange and a store of value.
dollar as the primary global reserve currency and the unit of account for much of world trade and commodity prices, most importantly oil.
Another unit of account will gradually take over in international financial transactions, crowding out the U.
In addition, no explanation is provided why each research project in the example constitutes a separate unit of account or how the enterprise determined the proper unit of account.
Money appeared first as a unit of account for a debt, not as a medium of exchange.
Henry's 'The Social Origins of Money: The Case of Egypt' begins by contrasting 'metallist' theories of money which see money as a 'thing' (a commodity, metal or coin, or a token representing one of them) which is understood as the result of a technical development increasing efficiency in exchange, with theories that stress money appearing as a unit of account representing an obligation and social relationship between creditors and debtors.
The government (or agency) need only define an indexed unit of account, like the unidad de fomento introduced in Chile in 1967.
FIN 48 uses R&D credit projects as an example of a unit of account, and the IRS and state authorities often examine R&D credit costs by project.
GoldGrams are the unit of account and will be the electronic form of gold owned directly by users of the system and held in a precious metals repository.