Question

Explain the store of value function of money. How has it solved the related problem created by barter.​

Answer 1

Explanation:

People store their value in terms of money whether it is in savings bank accounts for the fixed deposits in the bank money acts as the store of value when we say that a certain person is wealthy we generally express the wealth to in the money form for instance we say that the mans wealth is valued at 50 crores does money can be seen to be acting as a standard of store of value.or for example if Ram has rupees 500000/- you can buy a car. According to this sentence Ram has money but the actual value of money can be only calculated on the basis of the value of money. During the barter system it was difficult to calculate the value of money or the value of monetary transactions which takes place under bater exchange.