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When economists say that money is a store of value does it mean that money can be used to measure the value of other commodities?
Money has three functions, being a: 1) store of value; 2) unit of account; 3) medium of exchange. The first, a store of value, implies that money maintains and stores its value over time - unlike many other mediums of exchange, which can depreciate. Money is intended to be storeable, retrievable, and reuseable as a medium of exchange itself. Therefore, being a store of value does not mean that money can be used to measure the value of other commodities - that is its third function, medium of exchange.
What are the three basic function of money?
1. A store of value - it holds value, 2. A medium of exchange - it is used in financial transactions and 3. A unit of account - it used to measure the value of goods.
Is money a store of value?
No, because the value of money depreciates with inflation.
Example of money as a store of value?
making money at a garage sale and saving it
What are the 3 main fuctions of money?
Money as a Medium of Exchange, Money as a Measure of Value, Money as a Store of Value.
