BANKING AFFAIRS

Detailed explanation-1: -By using money, such problems can be overcome and people are able to save for the future. Modern form of money (such as coins, notes and bank deposits) permit people to save their surplus income. Thus money is used as a store of purchasing power.

Detailed explanation-2: -Money serves as a store of value. Because people are confident that money keeps its value over time, they’re willing to save it for future exchanges.

Detailed explanation-3: -In the monetary economy, money is considered a store of value, where it can be used as a means of saving and allocating capital. Money’s property as a store of value facilitates a transfer of purchasing power over time.

Detailed explanation-4: -Money acts as a unit of account or money is the measure of exchange value. This means that money is a sort of common denominator, through which the exchange value of all goods and services can be expressed without any difficulty.

Detailed explanation-5: -A store of value is an asset that does not depreciate. Gold and silver are great examples since their shelf life is basically perpetual. Food and vehicles are not stores of value since they depreciate rapidly and lose value.