Give reasons or explain. 1) Money works as a store of value.

Give reasons or explain.
1) Money works as a store of value.
Answer: Money can be easily stored without any loss in its value.  Thus, store of value as a function of money implies that money can easily be saved and used for future needs. Money’s function of storing value can be justified because of the following reasons:

i. Money is the most widely accepted medium of exchange.
ii. There is no loss in the value of money over time. Though there is a loss in the value of money due to inflation, it is negligible.
iii. Money can be stored conveniently and does not involve any cost.

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