Asked by Christa Preville on May 04, 2024
Verified
When money is held as an asset,it is serving as
A) a standard of value.
B) a standard of deferred payment.
C) a medium of exchange.
D) a store of value.
Store of Value
A function of money allowing individuals to preserve purchasing power for future use.
Asset
Something that is owned by or owed to an individual or a business firm.
Medium of Exchange
An item that is widely accepted in exchange for goods and services, facilitating trade by eliminating the need for a coincidence of wants.
- Acquire insight into the fundamentals and purposes of money, stressing its capacity as a vehicle for exchange, a unit of valuation, and a keeper of value.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
D
Explanation :
When money is held as an asset, it is serving as a store of value, allowing individuals to save their wealth for future use. While money can also serve as a medium of exchange (C) and a unit of account (A), it is not specifically performing those functions when being held as an asset. Similarly, while money can be used as a means of deferred payment (B), this is not its primary role when held as savings.
Learning Objectives
- Acquire insight into the fundamentals and purposes of money, stressing its capacity as a vehicle for exchange, a unit of valuation, and a keeper of value.