PRC-3 · Chapter 17 · Question 5 of 20
A country is suffering from hyperinflation, with prices doubling every week. People rush to spend their salaries the exact minute they receive them, refusing to save cash. Which function of money is completely destroyed by this hyperinflation?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Store of value
Explanation
Money serves as a store of value by retaining its purchasing power over time. Hyperinflation rapidly destroys this purchasing power, ruining money's ability to store value.
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