In order to obtain a commodity, we have to give something in return. That is, we have to pay some consideration in money or money’s worth. This process is called an exchange. There can be two types of exchanges – money exchange and barter exchange. In early days, barter exchange was prevalent. Money as a medium of exchange came much later when people saw deficiencies in the system of barter exchange. For example, consider a person with excess rice in hand and who wants to exchange it for some clothes. Now searching a person who has surplus clothing and who wants to exchange it for rice only is very difficult. The search costs become restrictive as the number of individuals increase. Thus, to avoid such a problem, an intermediate good is necessary which is acceptable to both parties. Such a good is called money.

Which of following can not act as store of value?
i. money

ii. gold

iii. landed property and houses

iv. bonds

None of the above

The correct answer is option 4: None of the above

AA store of value is one of the fundamental functions of money and other assets. It refers to the ability of an asset to retain its value over time, allowing it to be saved, stored, and used for future purchases or investments without losing value. All of the listed items can act as a store of value. In contrast, items like perishable goods or currencies experiencing high inflation are not good stores of value.

Here's a brief explanation:

Money: This is the most common store of value. It can be used to purchase goods and services now or in the future.

Gold: Gold has been used as a store of value for centuries. It is considered a precious metal and has held its value relatively well over time.

Landed property and houses: These can be valuable assets that can appreciate in value over time. They can also provide rental income.

Bonds: Bonds are debt instruments issued by governments or corporations. They represent a loan to the issuer and typically pay interest. Bonds can be bought and sold in the market, and their value can fluctuate.