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Question
How does money perform its role as store of value.
Answer in Brief
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Solution
- Store of value means store of wealth for use in future i.e., shifting of purchasing power from the present to future.
- Money is not perishable and its storage costs are also considerably lower. It is acceptable to anyone at any point of time.
- It, thus, enables the people to save a part of other current income and store it for future use.
- Thus, the money provides the link between the present and the future.
- 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.
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Chapter 7: Meaning and Functions of Money - QUESTIONS [Page 184]
