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 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).