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WAEC Economics 2014 Objective — Question 46

Question 46 of 50 from the West African Examinations Council (WAEC) Economics 2014 Objective paper, with the correct answer and a full explanation.

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Which of the following functions of money is mostly affected during inflation?

  • A. Medium of exchange
  • B. Unit of Account
  • C. Store of valueCorrect
  • D. Standard of deferred payment

Explanation

When there is inflation, the value of money is eroded away. It then becomes a poor store of value.

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