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Question : 7
Total: 19
Explain the significance of 'store of value' function of money.
Solution:
Store of Value: Money can be stored as a liquid asset. Currency notes can be kept at home or in the bank account for withdrawal at any time when the need arises. This income and expenditure do not occur at the same time. For example, an employer may have to pay daily wages to the labourers but s ∕ he may not receive her/his income daily. Here, money acts as a store of value and is used whenever required.
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