ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -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-3: -Money acts as a store of value. It means people can store their wealth in the form of money. Money is the most liquid form of wealth and it can be stored without loss in value. Money enables people to save a part of their current income and store it for future use.

Detailed explanation-4: -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.