Assertion (A): Money is a good store of value only when prices are stable.
Reason (R): When prices rise fast, the same money buys less over time.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

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CorrectNot quiteAnswer A

Correct answer: A

Inflation eats into money's purchasing power, which weakens it as a store of value.
R explains A.

Concept: Inflation and the store of value
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsFunctions of money

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Assertion (A): Money is a good store of value only when prices are stable.Reason (R): When prices rise fast, the same money buys less over time.

Explanation

Assertion (A): Money is a good store of value only when prices are stable.
Reason (R): When prices rise fast, the same money buys less over time.