If something is to serve as money it must be a store of value. This means that it must
A) be divisible.
B) be the standard by which all goods are compared in setting prices.
C) hold its purchasing power over time.
D) be liquid.

Question

Quizplus · Accepted Answer

For something to serve as money, it must be a store of value, meaning it should hold its purchasing power over time. Divisibility (A) and liquidity (D) are important attributes of money, but they do not guarantee that it will hold its value. Being the standard by which all goods are compared in setting prices (B) is more related to the function of money as a unit of account, rather than its function as a store of value.

If Something Is to Serve as Money It Must Be