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WAEC Economics 1995 Question 29

Question 29

Money and Inflation

The real value of money is

  1. A.its face value
  2. B.what it can buy at a particular time
  3. C.its rate of exchange with other currencies
  4. D.its intrinsic worth
  5. E.its rate of circulation
Show the answer and explanation

Answer: B (what it can buy at a particular time)

Explanation

The real value of money is its purchasing power, the quantity of goods and services it can buy.