Question
Discuss the function of money as store of value.

Answer

Money as a store of value: Before money became the medium of exchange it was difficult to generate and save wealth. for future needs of goods and supplies. It was not possible to keep animals as wealth because animals are living beings and they grow old and die one day. This made money the most successful means of storage of value in terms of time. It is easy to have money as a ‘storage of value’. Moreover, it can also be used to exchange crops or any other goods and services needed presently or even in future. Another advantage of using money is that it can be used in deferred payment. The credit system, loans, investment rates, sales-purchase methods, etc. got benefitted due these characteristics of money.

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