Advertisements
Advertisements
Question
Give reason or explain.
Money works as a store of value.
Solution
Money can be easily stored without any loss in its value. Thus, store of value as a function of money implies that money can easily be saved and used for future needs. Money’s function of storing value can be justified because of the following reasons:
i. Money is the most widely accepted medium of exchange.
ii. There is no loss in the value of money over time. Though there is a loss in the value of money due to inflation, it is negligible.
iii. Money can be stored conveniently and does not involve any cost.
APPEARS IN
RELATED QUESTIONS
In the case of token coins, intrinsic value is less than their face value.
Explain the ‘store of value’ function of money. How has solved the related problem created by barter?
D-mat account is useful to investors who deal in shares.
Distinguish between the following.
Standard coins and Token coins.
State whether the following statement is true or false :
Token coins are such coins whose face value is greater than their intrinsic value.
Define or explain the following concept.
Token coins.
Distinguish between
Convertible paper money and inconvertible paper money
Give reason or explain.
Money is the basis of credit.
The functions of money are that it is a ______.
