Question on: WAEC Economics - 2014
Which of the following functions of money is mostly affected during inflation?
A
Medium of exchange
B
Unit of Account
C
Store of value
D
Standard of deferred payment
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Correct Option: C
Inflation erodes the value of money; it does not keep its value. Something that costs a certain amount today will cost more tomorrow. This affects everything from the timing of transactions to the amount required for future payments (interest rates).
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