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WAEC Economics 2014 Question 46

Question 46

Money and Inflation

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

  1. A.Medium of exchange
  2. B.Unit of Account
  3. C.Store of value
  4. D.Standard of deferred payment.
Show the answer and explanation

Answer: C (Store of value)

Explanation

Money kept for later loses purchasing power, so its use as a store of value suffers most.