Which of the following qualities of money is generally undermined by inflation?

Assessment: WAEC SSCE - Commerce - 1999 (Objective) Subject: Commerce

Question 1 Report

Which of the following qualities of money is generally undermined by inflation?
Answer Details
The quality of money that is generally undermined by inflation is stability. Inflation is a general increase in the price level of goods and services in an economy over time. As the value of money decreases, it becomes less stable as a store of value. This means that people may lose confidence in the currency and may seek to use other forms of payment or store their wealth in other assets. As a result, inflation erodes the stability of money, making it less reliable for transactions and savings.
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