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Question
"Does a shirt priced at Rs. 300 exemplify the store of value function of money? Select the appropriate option:
Options
True
False
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Solution
This statement is False.
Explanation:
The store of value function of money refers to money’s ability to retain value over time, enabling it to be saved and used for future purchases. When we refer to a shirt priced at Rs. 300, we are discussing the medium of exchange function of money, not its store of value function. The medium of exchange function allows money to be used to facilitate the buying and selling of goods and services in this case, a shirt.
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RELATED QUESTIONS
Explain the significance of 'medium of exchange' function of money
Fill in the blank with appropriate alternatives given below
Medium of exchange is __________ function of money.
______ is the primary function of money.
Money is a medium of ______.
From the following data, calculate "Net Value Added at Factor Cost".
| S.no. | Content | (Rs. in Lakhs) |
| (i) | Sales | 400 |
| (ii) | Change in Stock | (−) 20 |
| (iii) | Intermediate consumption | 200 |
| (iv) | Net indirect taxes | 40 |
| (v) | Exports | 50 |
| (vi) | Depreciation | 70 |
Which of the following are the functions of money?
“The value of all goods and services can be expressed in monetary units.”
On the basis of the given statement, identify the function performed by money:
Which function of money helps avoid the problem of finding someone who wants exactly what you offer in exchange?
Paying rent each month is an example of which primary function of money?
