Which of the following functions of money would be violated if inflation were high?
A)unit of account
B)store of value
C)certificate of gold
D)medium of exchange

Question

Quizplus · Accepted Answer

If inflation were high, the store of value function of money would be violated. This means that money would not be able to retain its value over time, making it a poor choice for storing wealth. As a result, people would likely seek out alternative means of preserving their purchasing power, such as by investing in assets that are expected to appreciate in value or by purchasing durable goods that can be sold in the future. The other functions of money - unit of account, medium of exchange, and certificate of gold - would not necessarily be affected by high inflation.

Which of the Following Functions of Money Would Be Violated