During a period of severe inflation, which function of money is most seriously affected?
A)store of value
B)unit of account
C)medium of exchange
D)means of payment
E)barter

Question

Quizplus · Accepted Answer

During a period of severe inflation, the function of money that is most seriously affected is the store of value. This is because the value of money decreases rapidly, making it difficult for individuals to hold their savings in the form of currency or other monetary assets. People will be incentivized to spend their money quickly before its value decreases further, which ultimately reduces the effectiveness of money as a store of value.

During a Period of Severe Inflation, Which Function of Money