Give reason or explain.Money works as a store of value.

1.	Give reason or explain.Money works as a store of value.
Answer» 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

Answer»

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

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