A store of service is any commodity or ]
The near common store of usefulness in sophisticated times has been money, currency, or a commodity like the precious metal or financial capital. The detail of any store of value is risk management due to ademand for the underlying asset.
functions of money. The other functions are the medium of exchange, which is used as an intermediary to avoid the inconveniences of the coincidence of wants, together with the unit of account, which enables the value of various goods, services, assets in addition to liabilities to be rendered in multiples of the same unit. Money is well-suited to storing value because of its purchasing power. it is for also useful because of its durability.
Because of its function as a store of value, large quantities of money are hoarded. Money's usefulness as a store of value declines whether there are significant become different in the general level of prices. So if inflation rises, purchasing power to direct or imposing to direct or defining declines and a symbolize is placed on those holding money.
Workers who are paid in a currency which is experiencing high-inflation will prefer to spend their income quickly instead of saving it. When a currency loses its store of value, or more accurately when a currency is perceived to lose its future purchasing power, it fails to function as money. This causes people to usage currencies from other countries as a substitute.
According to the Cambridge cash-balance theory, which is represented by the Cambridge equation, money's ability to store value is more important than its function as a medium of exchange. Cambridge claims that the demand for money is derived from its ability to store value. This is contrary to Fisher economists' conception that demand arises because money is needed for exchange.