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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unit of account.
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store of value.
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unit of specialization
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Detailed explanation-1: -A store of value is an asset, currency, or commodity that maintains its value over a long period. An item would be considered a store of value if its value is either stable or increases over time but doesn’t depreciate.
Detailed explanation-2: -What is an example of a store of value? An example of a store of value is someone earning money on their paycheck and then depositing in the bank later on. They can then withdraw this money, knowing it retained its value over time, and spend it on goods and services.
Detailed explanation-3: -Money serves as a store of value.
Detailed explanation-4: -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.