To perform its function as a store of wealth and standard for deferred payment, money must be

To perform its function as a store of wealth and standard for deferred payment, money must be

Answer Details

For money to perform its function as a store of wealth and standard for deferred payment, it must be stable in value. Money is a medium of exchange, a unit of account, a store of wealth, and a standard for deferred payment. When people hold money as a store of wealth, they want to be confident that the value of their money will remain relatively stable over time. If the value of money were to fluctuate widely and unpredictably, people would be less willing to hold it as a store of wealth. This would reduce the effectiveness of money as a medium of exchange and a standard for deferred payment. Therefore, for money to serve as a reliable store of wealth and standard for deferred payment, it must have a stable value. In summary, the stability of value is essential for money to serve as a store of wealth and standard for deferred payment. While the other options, such as being portable and in an attractive form, may be important, they are not as critical as stability in value.