What does it mean for money to be a store of value?
Understand the Problem
The question is asking for an explanation of the concept of money as a store of value, specifically defined by the options provided. It seeks to identify which statement accurately describes this financial principle.
Answer
Money is a store of value if it retains purchasing power and value over time.
Money being a store of value means it can be saved and retrieved in the future without losing its purchasing power.
Answer for screen readers
Money being a store of value means it can be saved and retrieved in the future without losing its purchasing power.
More Information
A store of value is an essential characteristic of money that ensures it can be saved over time and remain valuable for future use, without deterioration.
Tips
A common mistake is confusing store of value with medium of exchange. Store of value pertains to maintaining value over time, whereas medium of exchange is about immediate trade.
Sources
- What is a store of value? (Definition and examples) | Indeed.com UK - uk.indeed.com
- Store of value - Wikipedia - en.wikipedia.org
- Store of Value - Overview, How It Works, Examples - corporatefinanceinstitute.com
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