<P> A unit of account (in economics) is a standard numerical monetary unit of measurement of the market value of goods, services, and other transactions . Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt . </P> <P> Money acts as a standard measure and common denomination of trade . It is thus a basis for quoting and bargaining of prices . It is necessary for developing efficient accounting systems . </P> <P> While standard of deferred payment is distinguished by some texts, particularly older ones, other texts subsume this under other functions . A "standard of deferred payment" is an accepted way to settle a debt--a unit in which debts are denominated, and the status of money as legal tender, in those jurisdictions which have this concept, states that it may function for the discharge of debts . When debts are denominated in money, the real value of debts may change due to inflation and deflation, and for sovereign and international debts via debasement and devaluation . </P> <P> To act as a store of value, a money must be able to be reliably saved, stored, and retrieved--and be predictably usable as a medium of exchange when it is retrieved . The value of the money must also remain stable over time . Some have argued that inflation, by reducing the value of money, diminishes the ability of the money to function as a store of value . </P>

Disadvantages of money as a medium of exchange