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 prices for goods.
II. The more stable money's value is, 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

II is correct because the stability of money's value is crucial for it to effectively serve as a store of value. I is incorrect because it describes money's function as a unit of account, not a store of value. III is incorrect because the double coincidence of wants is related to money's role in solving the problem of barter in its function as a medium of exchange, not its role as a store of value.

Which of the Following Applies to Money When It Serves