Macroeconomics: Money and Banking · Class 12 · CBSE · Commerce Economics
Which function of money is reflected when a person keeps money in a savings account to use it for purchasing goods in the future?
Practice question from Macroeconomics: Money and Banking (Class 12 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
easy · MCQ · Q-1ADAF1
Which function of money is reflected when a person keeps money in a savings account to use it for purchasing goods in the future?
- A.Medium of exchange
- B.Store of valueCorrect answer
- C.Unit of account
- D.Standard of deferred payment
Solution
Money acts as a store of value when it allows people to transfer purchasing power from the present to the future.
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