Question

How does money perform its role as store of value. 

How does money act as store of value?

Answer 1

1. Store of value means store of wealth for use in future i.e., a shift 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. The store of value function of money is also called as asset function of money. Money is a matter of four functions. A medium, a measure, a standard, a store.