Question

Which of the following is a valid criticism of the use of money as a store of value in modern economies?a. annual inflationary loss of buying power b. money supply is too narrowly defined c. storing money is wasteful d. imperfect as a unit of account

Answer 1

Annual inflationary loss of buying power is a valid criticism of the use of money as a store of value in modern economies.

Explanation:

As a result of a highly inflationary reduction in the buying ability of an economy, significant negative economic impacts emerge, particularly rising costs of consumer goods and services, with high-interest rates impacting global markets and lower ratings.

The buying power is the buyer's dollar value of credit to purchase additional stocks and bonds on the retirement account against the already marginal securities. Capacity can also be recognised as the purchasing power of the dollar.