It is possible to derive the value of GDP of a country. Which function of money is applicable here?

The correct answer is Unit of Account.

Key Points

• Unit of account:-
  • The function of money that is applicable here is the unit of account, as it is used to measure and express the value of goods and services in a country's economy.
  • GDP (Gross Domestic Product) is a measure of the total value of all goods and services produced within a country's borders in a specific period of time, usually a year.
  • The use of a common unit of account, such as a country's currency, allows for the calculation and comparison of GDP across different sectors and regions of the economy.

Additional Information

• Store of value:-
  • It refers to the ability of money to hold its value over time, allowing individuals to save and accumulate wealth.
• Standard of deferred payments:-
  • It refers to the use of money as a means of settling debts and obligations in the future.
• Medium of exchange:-
  • It refers to the use of money as a widely accepted and easily transferable means of payment for goods and services.