All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
Commerce Exam  >  Commerce Questions  >  The functions of money is that it is aa)Store... Start Learning for Free
The functions of money is that it is a
  • a)
    Store of stocks
  • b)
    Store of currency
  • c)
    Store of value
  • d)
    None of the above
Correct answer is option 'C'. Can you explain this answer?
Clear all your Commerce doubts with EduRev
Most Upvoted Answer
The functions of money is that it is aa)Store of stocksb)Store of curr...
Functions of Money

Money plays several roles in an economy. These roles are known as functions of money. The four key functions of money are:

1. Medium of Exchange: Money is used as a medium of exchange to buy goods and services. It makes transactions more convenient and efficient as it eliminates the need for barter system.

2. Measure of Value: Money serves as a measure of value as it provides a standard unit for measuring the worth of goods and services. This makes it easier for people to compare the values of different goods and services.

3. Standard of Deferred Payment: Money is used as a standard of deferred payment, which means that it allows people to buy goods and services on credit and pay for them later.

4. Store of Value: Money serves as a store of value as it can be saved and used at a later date. This function of money is important as it enables people to save for future needs and invest in assets.

The Correct Answer

The correct answer to the given question is option 'C', which states that money is a store of value. This is because money can be saved and used at a later date, which makes it a store of value. Money serves as a means of storing wealth, which can be used to meet future needs or make investments. The other options mentioned in the question, such as store of stocks and store of currency, are not functions of money.
Free Test
FREE
Start Free Test
Start Free Test
Community Answer
The functions of money is that it is aa)Store of stocksb)Store of curr...
Well in an easy way to understand this we can say that  the primary function of money as a store of value is that it can be used to transfer purchasing power from present to future..the main reason behind this is that it is most economical and convenient way to store money as its storage does not require much space...basically money as a store of value provide security to individuals...
Explore Courses for Commerce exam

Similar Commerce Doubts

Read the following case study paragraph carefully and answer the question based on the same.The central bank of India i.e. Reserve Bank of India is the apex institution that controls the entire financial market. It’s one of the major functions is to maintain the reserve of foreign exchange. Also, it intervenes in the foreign exchange market to stabilize the excessive fluctuation in the foreign exchange rate.In other words, it is the central bank’s job to control a country’s economy through monetary policy; if the economy is moving slowly or going backward, there are steps that the central bank can take to boost the economy. These steps, whether they are asset purchases or printing more money, all involve injecting more cash into the economy. The simple supply and demand economic projection occurs and currency will devalue.When the opposite occurs, and the economy is growing, the central bank will use various methods to keep that growth steady and in-line with other economic factors such as wages and prices. Whatever the central bank does or doesn’t do, will affect the currency of that country. Sometimes, it is within the central bank’s interest to purposefully affect the value of a currency. For example, if the economy is heavily reliant on exports and their currency value becomes too high, importers of that country’s commodities will seek cheaper supply; hence directly affecting the economy.Q. Which of the following steps should be taken by the central bank if there is an excessive rise in the foreign exchange rate?

Read the following case study paragraph carefully and answer the question based on the same.The central bank of India i.e. Reserve Bank of India is the apex institution that controls the entire financial market. It’s one of the major functions is to maintain the reserve of foreign exchange. Also, it intervenes in the foreign exchange market to stabilize the excessive fluctuation in the foreign exchange rate.In other words, it is the central bank’s job to control a country’s economy through monetary policy; if the economy is moving slowly or going backward, there are steps that the central bank can take to boost the economy. These steps, whether they are asset purchases or printing more money, all involve injecting more cash into the economy. The simple supply and demand economic projection occurs and currency will devalue.When the opposite occurs, and the economy is growing, the central bank will use various methods to keep that growth steady and in-line with other economic factors such as wages and prices. Whatever the central bank does or doesn’t do, will affect the currency of that country. Sometimes, it is within the central bank’s interest to purposefully affect the value of a currency. For example, if the economy is heavily reliant on exports and their currency value becomes too high, importers of that country’s commodities will seek cheaper supply; hence directly affecting the economy.Q. Dear money policy of the central bank, which is used to keep the growth steady and in-line with other economic factors, refers to

Read the following case study paragraph carefully and answer the question based on the same.The central bank of India i.e. Reserve Bank of India is the apex institution that controls the entire financial market. It’s one of the major functions is to maintain the reserve of foreign exchange. Also, it intervenes in the foreign exchange market to stabilize the excessive fluctuation in the foreign exchange rate.In other words, it is the central bank’s job to control a country’s economy through monetary policy; if the economy is moving slowly or going backward, there are steps that the central bank can take to boost the economy. These steps, whether they are asset purchases or printing more money, all involve injecting more cash into the economy. The simple supply and demand economic projection occurs and currency will devalue.When the opposite occurs, and the economy is growing, the central bank will use various methods to keep that growth steady and in-line with other economic factors such as wages and prices. Whatever the central bank does or doesn’t do, will affect the currency of that country. Sometimes, it is within the central bank’s interest to purposefully affect the value of a currency. For example, if the economy is heavily reliant on exports and their currency value becomes too high, importers of that country’s commodities will seek cheaper supply; hence directly affecting the economy.Q. Which of the following tools are used by the central bank to control the flow of money in the domestic economy?

Top Courses for CommerceView all

Top Courses for Commerce

The functions of money is that it is aa)Store of stocksb)Store of currencyc)Store of valued)None of the aboveCorrect answer is option 'C'. Can you explain this answer?
Question Description
The functions of money is that it is aa)Store of stocksb)Store of currencyc)Store of valued)None of the aboveCorrect answer is option 'C'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The functions of money is that it is aa)Store of stocksb)Store of currencyc)Store of valued)None of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The functions of money is that it is aa)Store of stocksb)Store of currencyc)Store of valued)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Solutions for The functions of money is that it is aa)Store of stocksb)Store of currencyc)Store of valued)None of the aboveCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of The functions of money is that it is aa)Store of stocksb)Store of currencyc)Store of valued)None of the aboveCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of The functions of money is that it is aa)Store of stocksb)Store of currencyc)Store of valued)None of the aboveCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for The functions of money is that it is aa)Store of stocksb)Store of currencyc)Store of valued)None of the aboveCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of The functions of money is that it is aa)Store of stocksb)Store of currencyc)Store of valued)None of the aboveCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice The functions of money is that it is aa)Store of stocksb)Store of currencyc)Store of valued)None of the aboveCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
SaveJoin the Discussion on the App for FREE
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup