ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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medium of exchange
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store of value
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measure of value/unit of account
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None of the above
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Detailed explanation-1: -Store of value: Money is the most liquid asset (Liquidity measures how easily assets can be spent to buy goods and services). Money’s value can be retained over time. It is a convenient way to store wealth.
Detailed explanation-2: -With the help of money, people can store surplus purchasing power and use it whenever they wish to. Money serves as a store of value for goods in liquid form. Savings in the form of money are not only secure but the possibility of it being disrupted is very low. Besides, money can be carried around and is portable.
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: -The most common method to value currency is through exchange rates. The two main exchange rate systems are fixed rate and floating rate systems.
Detailed explanation-5: -A medium of exchange. A standard of deferred payment. A store of wealth. A measure of value. 13-Dec-2022