store of value

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One of the functions of money. If asset prices are stable, money is unattractive as a store of value, as it brings in no income, but if asset prices are unstable, it may be worth holding some part of total assets in money, as a safeguard against risk. Money is particularly attractive as a store of value if it is believed that prices generally will fall, and is less so the more inflation is thought likely.

Subjects: Economics.

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