When Economists Refer to the Role of Money as a Store

question 46

Multiple Choice

When economists refer to the role of money as a store of value, they mean that

• A)money never loses its value, unlike other assets.
• B)money allows value to be stored easily.
• C)the value of money falls only when the quantity of money in circulation falls.
• D)the value of money falls only when the quantity of money in circulation rises.

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Definitions:

Colonial Planters

Landowners in colonial times, often in the Americas, who cultivated crops such as tobacco, cotton, and sugar on large plantations, typically using slave labor.

Luxuries

Items or services considered to be of high quality and comfort but not necessary for daily living.

Debt

An obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor.

Charleston

A historic city in South Carolina, known for its rich history, well-preserved architecture, and as a pivotal site in both the American Revolution and Civil War.