Question

If you use money as a store of value, you would be

A. buying a new pair of shoes.
B. putting money in your college savings account.
C. comparing tuition costs for Princeton and Yale.
D. charging a new book on your credit card.
E. withdrawing $500 from your checking account.

Answer 1

B. Putting money in your college savings account

Step-by-step explanation:

The term store of value refers to something that can be saved, retrieved and exchanged at a later time without losing its purchasing power. Money, along with, for example, gold and silver, serves as a store of value. Putting money in our college savings account is a good example of using money this way. We do not need the said money at the moment, so we save it for later, once the time for college application arrives. The money will still have its value, its purchasing power, and we will still be able to use it even years later.