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WAEC Economics 2003 Question 32

Question 32

Money and Inflation

Money becomes a very poor store of value in a period of

  1. A.deflation
  2. B.depression
  3. C.recession
  4. D.inflation.
Show the answer and explanation

Answer: D (inflation.)

Explanation

During inflation money loses purchasing power, so holding it is a poor way to store value.