Which of the following functions of money is mo... - WAEC Economics 2014 Question
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
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).
Please share this, thanks:
Add your answer
No responses