money of account: meaning, definition, pronunciation and examples
C1Formal, Technical, Academic
Quick answer
What does “money of account” mean?
A standard monetary unit used for record-keeping, accounting, or setting prices, but not necessarily circulating as a physical coin or banknote.
Audio
Pronunciation
Definition
Meaning and Definition
A standard monetary unit used for record-keeping, accounting, or setting prices, but not necessarily circulating as a physical coin or banknote.
A notional unit of value that serves as a common measure for comparing the value of different currencies, goods, or financial instruments within a specific system, such as in historical contexts, international finance, or virtual economies.
Dialectal Variation
British vs American Usage
Differences
No significant differences in definition or usage. The term is used identically in both financial and academic registers.
Connotations
Technical, historical, or specialised financial/economic contexts.
Frequency
Equally low frequency in both varieties, confined to specialised fields like economic history, accounting, and some international finance.
Grammar
How to Use “money of account” in a Sentence
[Currency/Unit] + served as + the money of account + for + [Region/System]Prices were set in + [money of account]Vocabulary
Collocations
Examples
Examples of “money of account” in a Sentence
verb
British English
- The guinea continued to money of account for professional fees long after the coin disappeared.
American English
- The system was designed to money of account for transactions across multiple sovereign states.
adverb
British English
- Payments were calculated money-of-account, then settled in commodity goods.
American English
- The contract was valued money-of-account, though payment was in a different currency.
adjective
British English
- The money-of-account principle simplified the complex colonial trade ledgers.
American English
- They established a money-of-account system to stabilize internal pricing.
Usage
Meaning in Context
Business
Used in international trade to invoice transactions in a stable unit not subject to the fluctuations of a national currency.
Academic
Common in economic history texts to describe monetary systems where the coin in circulation differed from the unit used for accounting (e.g., medieval Europe).
Everyday
Virtually never used in everyday conversation.
Technical
Used in macroeconomics and finance to describe an abstract standard for measuring and comparing value, such as Special Drawing Rights (SDRs).
Vocabulary
Synonyms of “money of account”
Strong
Neutral
Weak
Vocabulary
Antonyms of “money of account”
Watch out
Common Mistakes When Using “money of account”
- Using it to refer to physical cash or bank accounts.
- Confusing it with 'medium of exchange', which is the actual money used to buy things.
FAQ
Frequently Asked Questions
Yes, they are essentially synonymous in economic terminology, both referring to the standard unit for measuring and stating value.
Yes, Special Drawing Rights (SDRs) from the International Monetary Fund are a modern money of account. They are used for accounting between nations but are not a currency you can hold.
Historically, this provided stability. Physical coins could be debased (reduced in precious metal content), wear down, or come from many regions, but the money of account remained a fixed, reliable standard for contracts and bookkeeping.
It can function as one for its users, but its high price volatility limits its widespread adoption as a stable unit for accounting and pricing goods in the broader economy, which is a key feature of a traditional money of account.
A standard monetary unit used for record-keeping, accounting, or setting prices, but not necessarily circulating as a physical coin or banknote.
Money of account is usually formal, technical, academic in register.
Money of account: in British English it is pronounced /ˈmʌni əv əˈkaʊnt/, and in American English it is pronounced /ˈmʌni əv əˈkaʊnt/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “None applicable.”
Learning
Memory Aids
Mnemonic
Think of a 'money of account' as the scorekeeper in a game. It tracks the points (value) but isn't one of the playing pieces (physical money) itself.
Conceptual Metaphor
VALUE IS A MEASURE (using a standardised ruler for economic value).
Practice
Quiz
In which of the following scenarios is the term 'money of account' MOST appropriately used?