Which of the following functions of money is mostly affected during inflation?
Answer Details
The function of money that is mostly affected during inflation is the store of value. Inflation reduces the purchasing power of money over time, making it less valuable as a store of value. This means that the amount of goods and services that can be purchased with a certain amount of money decreases as inflation increases. As a result, people tend to prefer holding assets that retain their value better during inflation, such as real estate or commodities, rather than money.