Any form of commodity, asset, or money that has value and
can be stored and retrieved over time. Possessing a store of value is
an underlying basis for any economic system, as some medium is necessary
for a store of value in order for individuals to engage in the exchange
of goods and services. As long as a currency is relatively stable in
its value, money (such as a dollar bill) is the most common and
efficient store of value found in an economy.
Money is a store of value. If I work today and earn 25 dollars, I can
hold on to the money before I spend it because it will hold its value
until tomorrow, next week, or even next year. In fact, holding money is a
more effective way of storing value than holding other items of value
such as corn, which might rot. Although it is an efficient store of
value, money is not a perfect store of value. Inflation slowly erodes
the purchasing power of money over time.
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Nov 22nd, 2014
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