Ricardo keeps some cash at home so that it is available whenever there is an emergency. He has not needed to use it in the past five years, but he feels better knowing that he has this purchasing power available. What is the primary function of money that is represented by Ricardo's action?
A) store of value
B) unit of account
C) commodity value
D) medium of exchange

Question

Quizplus · Accepted Answer

Ricardo's action of keeping cash at home for emergencies, even without using it for five years, highlights money's function as a store of value. This means money can be saved and retrieved in the future, retaining its value over time.

Ricardo Keeps Some Cash at Home So That It Is