Categories: Economics WAEC

Money would cease to be a good store of value when

A. prices of goods and services are falling slowly
B. there is a high level of unemployment
C. prices of goods and services are rising rapidly
D. prices of go0ds and services are rising slowing

Correct Answer:

Option C – prices of goods and services are rising rapidly

Explanation

Money is considered a store of value, where it can be used as a means of saving and allocating capital. Where the value of goods and services is on the rise, the purchasing power of money drops. With this, the value of the money that was stored years back will no longer have the same value due to the change in the prices of commodities.

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