Monetary unit
A monetary unit (also denomination ; abbreviation G or GE ) is understood in economics to be the infinitesimally smallest amount of money available regardless of the respective currency .
General
The monetary unit has the character of a unit of measurement or a unit of measure and its functions correspond to the unit of length (1 meter ) or the unit of weight (1 kilogram ), so it is a price unit of measurement . The indication of the monetary unit (MU) is made accordingly with "1 MU". However, the monetary unit lacks an essential property of other units of measurement, namely their stability ; because the value of money is always subject to certain fluctuations.
The monetary unit also describes the legal tender of a state or an economic area , which serves as a unit of account .
Price unit of measure
In economics, the monetary unit is a yardstick in which, by multiplying the quantities of goods with market prices - measured in monetary units per unit of quantity of the individual goods - the quantities of goods are transformed into monetary units and thus made comparable. For example, if the market price for a light bulb (1 piece ) is 1 monetary unit, 4 pears cost 4 monetary units. This price-quantity ratio can be applied to all subject areas. The return on investment is a relative profit , namely the profit per monetary unit.
use
The monetary unit is a neutral quantity because it lacks the specification of the currency and / or the currency symbol . A monetary unit (1 GE) can therefore be interpreted across countries as 1 euro , 1 Swiss franc , 1 US dollar , etc.
See also
Individual evidence
- ↑ Max Rudolf Lehmann : General Business Administration: General Theory of Business Management , 1956, p. 187
- ↑ Definition of terms on ad-hoc-news.de, accessed on September 25, 2011
- ^ Klaus-Peter Kistner / Marion Steven: Business administration in the basic course. 2002, p. 13
- ^ Klaus-Peter Kistner / Marion Steven: Business administration in the basic course. 2002, p. 261