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State with the reasons whether you agree or disagree with the following statements:

Money has no store of value.

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No, I do not agree with the statement. 

  • Money performs an important function as a store of value.
  •  Although wealth can be stored in a form other than money, money is the most convenient form in which wealth can be stored. Since money is the most liquid asset, it can be used for future use whenever needed.
  • Money can be stored without the loss in its value. 
  • This was not possible under barter exchange because goods could not be stored for a long time and there could be lost in the value of commodities. 
  • This function of money enables people to save a part of their income and store it for future use. 
  • Savings lead to capital formation which in turn will lead to the economic development of a country.

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