What is the real value of money?
A) its face value
B) its compounded earnings in banks
C) the quantity of goods and services it can buy
D) the amount of it you have

Question

Quizplus · Accepted Answer

The real value of money is determined by the quantity of goods and services it can buy. The face value of money may not accurately reflect its true purchasing power due to inflation or changes in the economy. The compounded earnings in banks may increase the nominal value of money, but it doesn't reflect the real value that it can buy. The amount of money one has may also not reflect its real value since someone with a small amount of money can potentially buy more than someone with a large amount of money, depending on the cost of goods and services.

What Is the Real Value of Money