Economics
WAEC 2014
Which of the following functions of money is mostly affected during inflation?
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A.
Medium of exchange
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B.
Unit of Account
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C.
Store of value
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D.
Standard of deferred payment
Correct Answer: Option C
Explanation
Inflation erodes the value of money; it does not keep its value. Something that costs a certain amount today will cost more tomorrow. This affects everything from the timing of transactions to the amount required for future payments (interest rates).
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