Which of the following illustrates the store-of-value function of money?
A) writing a check to buy a new Volkswagen
B) noting that the price of a $20,000 Volkswagen is 16,000 euros
C) agreeing to repay a bank $400 a month for the next 48 months for a loan to buy a new Volkswagen
D) keeping $20,000 in cash in your mattress instead of buying a new Volkswagen

Question

Quizplus · Accepted Answer

The store-of-value function of money refers to the ability to save or store purchasing power for future use. Keeping $20,000 in cash preserves its value for future purchases, illustrating this function.

Which of the Following Illustrates the Store-Of-Value Function of Money