The Main Disadvantage of Using Money as a Store of Value

question 14

Multiple Choice

The main disadvantage of using money as a store of value is that:

• A)other assets provide greater anonymity than cash.
• B)barter is a more efficient way to conduct transactions than using money.
• C)unlike other assets, money serves as a medium of exchange.
• D)other assets pay relatively higher rates of interest than money.

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Definitions:

Advancement in Technology

Improvements and innovations in technology that enhance productivity, efficiency, and often lead to the creation of new products or services.

Technological Advance

The improvement or innovation in technology that increases productivity, efficiency, or brings new products and services to the market.

Production of Automobiles

The process involving the design, manufacturing, and marketing of cars and other vehicles.

Supply Curve

A graphical representation that shows the relationship between the price of a good and the quantity supplied.