Q.Write a short note on: Store of value
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Start your 14-day free trial to unlock the full solution →Store of value is a function of money by which wealth and purchasing power can be held and carried forward to the future in the form of money, because money is durable, easily stored and generally retains its value.
Meaning
Store of value is one of the store (contingent) functions of money. It means that money can be used to store wealth and purchasing power for the future.
Because money is durable, easily stored, and (when prices are stable) retains its value, people prefer to keep their savings in the form of money rather than in goods, which may perish or be costly to store. By holding money, a person can carry his purchasing power from the present to the future and spend it whenever he wishes. (This function works well only when the value of money is stable; during rapid inflation money becomes a poor stor …
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