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

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Which of the following is a store of value?

 

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currency

 
 

U.S. government bonds

 
 

fine art

 
   
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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.

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