What is money - Functions of money - Store of Value

5 important questions on What is money - Functions of money - Store of Value

Why is money a repository of purchasing power available over time?

It is used to save purchasing power from the tie income is received until the time it is spent

What is a store of value? And is money the unique store of value?

An asset that maintains its value, rather than depreciating. No, stocks, bonds, land... Are also stores of value.

What is the most liquid of all assets?

Money because it is the medium of exchange, but it loses value during inflation
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Where does the quality of the store of value depend on?

On the price level.

What happens when the price level increases rapidly?

Money loses value fast and people become reluctant to hold wealth in this form (stop doing it)

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