Explain the significance of store of value function of money

cbse-class-12

#1

Significance of the ‘store of value’ function of money is stated in the following points:
(i) Money is an asset that retains its value overtime, therefore public store its wealth in the form of money.
(ii) Money overcomes the problem of storing perishable items under barter system of exchange. With money, people hold liquidity and value in a much more convenient manner.