Which of the following is a store of value?   Studypug.com Question:     currency     U.S. government bonds     fine art

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST10: The Question Of Resource Exhaustion
Section: Chapter Questions
Problem 5CQ
icon
Related questions
Question

Which of the following is a store of value?

 

Studypug.com Question:

 
 

currency

 
 

U.S. government bonds

 
 

fine art

 
   
Expert Solution
Step 1a

Store of value refers to any commodity or asset that would retain purchasing power in the future and this is the function of an asset that can be exchanged, retrieved, and saved at a later time and it would be useful when it is retrieved.  The most common store of value is money, currency  or a commodity like precious metal and financial assets. Risk management due to stable demand for the asset is the main point of the store of value. Money is considered to be the most important source of store of value because of two things: liquidity and medium of exchange, that is, it can be exchanged easily for other goods and services.

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Paper Money
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa…
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning