ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Store of Value
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Unit of Account
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Medium of Exchange
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Portability
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Detailed explanation-1: -Key Takeaways. A store of value is an asset that maintains its value, rather than depreciating. Gold and other precious metals are good stores of value because their shelf lives are essentially perpetual.
Detailed explanation-2: -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-3: -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-4: -Define “storehouse of value” Any item that maintains its worth over time (ex: money, gold, or diamonds)