Which of the Following Illustrates the Store-Of-Value Function of Money

question 92

Multiple Choice

Which of the following illustrates the store-of-value function of money?

• A)writing a check to buy a new Volkswagen
• B)noting that the price of a $20,000 Volkswagen is 30,000 German marks
• C)agreeing to repay a bank $400 a month for the next 48 months for a loan to buy a new Volkswagen
• D)keeping $20,000 in cash in your mattress instead of buying a new Volkswagen

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Definitions:

Withdrawing

The act of removing or pulling back from a commitment, activity, bank account, or legal proceeding.

Income

The monetary payment received for the provision of goods, services, or labor from one individual or entity to another.

Price of Food

The cost associated with purchasing food items, which can fluctuate based on factors like seasonality, demand, and agricultural productivity.

Price of Clothing

The amount of money required to purchase garments and attire.