ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A store of value is any commodity or asset that would normally retain purchasing power into the future and is the function of the asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved.

Detailed explanation-2: -A store of value is essentially an asset, commodity, or currency that can be saved, retrieved, and exchanged in the future without deteriorating in value. In other words, to enter this category, the item acquired should, over time, either be worth the same or more.

Detailed explanation-3: -ADVERTISEMENTS: Lastly, money acts as store of value. Money being the most liquid of all assets is a convenient form in which to store wealth, that is, money can be held as an asset. Thus store of value function is also called asset function of money.

Detailed explanation-4: -Money as a store of value means that money is used as a widely accepted currency that holds its value over time. People can earn money, save it, and then spend it later on, knowing that the value has been stored over time.

Detailed explanation-5: -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. Modern economies use fiat money-money that is neither a commodity nor represented or “backed” by a commodity.