ECONOMICS
MONEY
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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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Unit of account
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Standard of deferred payments
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Detailed explanation-1: -They share the three functions of money: First: Money is a store of value. If I work today and earn 25 dollars, I can hold on to the money before I spend it because it will hold its value until tomorrow, next week, or even next year.
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: -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 as a medium of exchange, as a store of value, and as a unit of account. Medium of exchange. Money’s most important function is as a medium of exchange to facilitate transactions.
Detailed explanation-5: -A medium of exchange. A standard of deferred payment. A store of wealth. A measure of value. 13-Dec-2022