? asked in Social ScienceEconomics · 4 years ago

If money is a medium of exchange must it be a store of value?

Any real world examples in which medium of exchange and a store of value might be seperated would really help.

2 Answers

Relevance
  • Anonymous
    4 years ago
    Favorite Answer

    There are numerous real world examples where store of value doesn't equate to a medium of exchange, but not in terms of money, as the question states. By definition, money performs both functions.

    Many assets, such as real estate, stocks and bonds, baseball cards, etc., perform the store of value function, but not the medium of exchange function.

    Baseball cards can also work the other way around: performing as a medium of exchange but not a store of value. For example, 2 kids decide to trade their duplicate cards to each other, without regards to the monetary value that the cards may hold for them in the future. They are only interested in increasing their supply of non-duplicate cards by reducing their supply of duplicate cards.

    • Commenter avatarLogin to reply the answers
  • Anonymous
    4 years ago

    if you buy a cow for a dollar today, it has to be a dollar for a cow on the next day. But it might not be the same cow.

    • Commenter avatarLogin to reply the answers
Still have questions? Get your answers by asking now.