Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

Which of the following can function as a store of value?
i. Gold
ii. Landed property
iii. Houses
iv. Bonds
v. Rice grain and pulses

Options:

i, ii, iii

i, iii, iv, v

i, ii, iii, iv

All mentioned above

Correct Answer:

i, ii, iii, iv

Explanation:

The correct answer is Option 3: i, ii, iii, iv

Store of value refers to a characteristic of an asset that allows it to retain its value over time, making it possible to save wealth and use it in the future. An effective store of value preserves the purchasing power of money or assets, despite the passage of time.

Explanation:

  • Gold: Gold can function as a store of value because it is durable and maintains its value over time.
  • Landed Property: Landed property (real estate) can store value as it typically appreciates over time and is a stable asset.
  • Houses: Houses, like other real estate, can serve as a store of value due to their durability and potential for value appreciation.
  • Bonds: Bonds can store value as they represent debt obligations and provide returns over time.

Rice grain and pulses are perishable and may not effectively function as a store of value in the long term due to their limited shelf life.