money becomes a very poor store of value in a period of

Assessment: WAEC SSCE - Economics - 2003 (Objective) Subject: Economics

Question 1 Report

money becomes a very poor store of value in a period of
Answer Details
Money becomes a very poor store of value in a period of inflation. Inflation is a sustained increase in the general price level of goods and services in an economy over time, which reduces the purchasing power of money. As prices rise, the value of money decreases, and the money that is saved or held loses its purchasing power over time. This makes it difficult to store wealth in the form of money, and people may look to alternative investments or stores of value to protect their wealth against inflation.

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