CBSE 2016 Class 12 Economics Delhi Set-1

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Question : 11
Total: 18
Explain the 'store of value' function of money. How has it solved the related problem created by barter?
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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