Question 24 of 36
Q.Write a short note on: Store of value
Yanam BieapBIEAP AP Intermediate (1st Year) Commerce Board 2020Subjective· 2mImportance★★★★★
67% · 24/36 Questions
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Start your 14-day free trial to unlock the full solution →Store of value is the function of money that lets people hold their wealth and purchasing power over time. Because money is durable, generally acceptable and liquid, it can be saved now and used to buy goods and services in the future, which is why it serves as a convenient store of value.
Meaning
Store of value means that money can be kept and stored for use at a later time. People do not spend all their income at once; they save part of it. Money is a convenient way of holding that saving because it can be stored easily and used whenever needed.
Money performs this function well because:
- it is generally acceptable, so it can be converted into goods and services at any time;
- it is the most liquid of all assets; and
- it can be stored without much cost or loss, except that its value falls during inflation. …
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