ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Primary function i.e money is used as a medium of exchange and it is the measure of value. 2. The secondary function of money i.e. It is the standard of deferred payments, the transfer, and store of value.

Detailed explanation-3: -Money as a Store of Value So, when people exchange items for money, that money retains a particular value that can be used in other transactions. This ability to function as a store of value facilitates saving for the future and engaging in transactions over long distances.

Detailed explanation-4: -Money serves several functions: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.