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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 717 |
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At this point, money is a storage area of purchasing power over time. A store of value is used to save purchasing power from the time income is received until the right time it is spent. This function of money is useful because most of us do not want to spend our income immediately upon receiving it but rather prefer to wait until we have the time or the desire to spend it...
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This function of money is useful because most of us do not want to spend our income immediately upon receiving it but rather prefer to wait until we have the time or the desire to spend it. Apart from money, other assets such as bonds, land, houses can be used as the store of value as well. In fact, money is not always the best store of value, but it is the only perfectly liquid asset in the financial system because it doesn’t need to be converted into any other form in order to be spent...
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General points of the essay
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