Which of the following applies to money when it serves as a store of value?
I.Money is a store of value because it is an agreed measure for stating goods' prices.
II.The more stable money's value, the better it serves as a store of value.
III.When money serves as a store of value, it requires a double coincidence of wants.
A) I only
B) II only
C) I and II
D) II and III

Question

Quizplus · Accepted Answer

Money serves as a store of value when it can maintain its value over time. Therefore, the more stable its value, the better it serves as a store of value. Option I is incorrect because while the use of money as a measure for stating goods' prices may contribute to its value as a medium of exchange, this does not necessarily make it a store of value. Option III is also incorrect as there is no need for a "double coincidence of wants" for money to serve as a store of value.

Which of the Following Applies to Money When It Serves