When We Say That Money Serves as a Store of Value

question 69

Multiple Choice

When we say that money serves as a store of value, we mean that it is:

• A)a way to keep some of our wealth in a readily spendable form for future use.
• B)a means of payment.
• C)a monetary unit for measuring and comparing the relative values of goods.
• D)declared as legal tender by the government.

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Definitions:

Microeconomics

studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources.

Macroeconomics

The branch of economics that studies the behavior and performance of an economy as a whole, focusing on total national income, employment, and price levels.

Equilibrium Price

The price at which the quantity of a good or service supplied is equal to the quantity demanded, resulting in market balance.

Economics

The social science that studies the production, distribution, and consumption of goods and services.