PRC-3 · Chapter 17 · Question 14 of 20
During a period of massive hyperinflation, people rush to spend their salaries the exact second they are paid, refusing to save cash in a bank. Which function of money is totally destroyed here?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Store of value
Explanation
Money serves as a store of value. Hyperinflation rapidly destroys its purchasing power, meaning cash can no longer reliably store wealth over time.
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