English

How does money perform its role as store of value. - Economic Applications

Advertisements
Advertisements

Question

How does money perform its role as store of value. 

Answer in Brief

Solution

  1. Store of value means store of wealth for use in future i.e., shifting of purchasing power from the present to future.
  2. Money is not perishable and its storage costs are also considerably lower. It is acceptable to anyone at any point of time.
  3. It, thus, enables the people to save a part of other current income and store it for future use.
  4. Thus, the money provides the link between the present and the future.
  5. Store of value function of money is also called as asset function of money. 
    Money is a matter of functions four.
    A medium, a measure, a standard, a store.
shaalaa.com
Functions of Money
  Is there an error in this question or solution?
Chapter 7: Meaning and Functions of Money - QUESTIONS [Page 184]

APPEARS IN

Goyal Brothers Prakashan Economic Application [English] Class 10 ICSE
Chapter 7 Meaning and Functions of Money
QUESTIONS | Q 3. 2 (ii) | Page 184
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×