What is the real value of money?
A) the amount of it you have
B) the quantity of goods and services it can buy
C) its compounded earnings in banks
D) its face value

Question

Quizplus · Accepted Answer

The real value of money is determined by the quantity of goods and services it can buy. The amount of money one has or its face value does not determine its real value as the value of money can fluctuate based on inflation and other economic factors. Compounded earnings in banks also do not determine the real value of money as it only applies to a limited amount of money and does not account for the overall value of money in the economy.

What Is the Real Value of Money