PRC-3 · Chapter 17 · Question 10 of 20
During a period of extreme hyperinflation, people rush to spend their money the exact second they get paid, refusing to save any of it. Which critical function of money is completely destroyed here?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Store of value
Explanation
Money serves as a store of value. Hyperinflation rapidly destroys money's purchasing power, meaning it can no longer reliably store wealth over time.
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