Which of the following functions of money is mostly affected during inflation?

By: |Published on: Nov 8|Categories: Economics WAEC| 0 comments

A. Medium of exchange
B. Unit of Account
C. Store of value
D. Standard of deferred payment

Correct Answer: Option C

C. Store of value

Explanation

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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