BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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scarcity
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portability
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divisibility
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store of value
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Detailed explanation-1: -To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.
Detailed explanation-2: -Money as a Store of Value 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-3: -Economists differentiate among three different types of money: commodity money, fiat money, and bank money.
Detailed explanation-4: -One of the functions of money in an economy is that it serves as a store of value. A store of value is something that people use to transfer purchasing power from the present to the future. While money is an asset that can store value, it’s not the only type. Gold and silver, for example, act as stores of value.
Detailed explanation-5: -Answer and Explanation: The correct answer is b. Price mechanism. The price mechanism is not a function of money.