WAEC Economics 2020 Objective — Question 36

Question 36 of 50 from the West African Examinations Council (WAEC) Economics 2020 Objective paper, with the correct answer and a full explanation.

Money would cease to be a good store of value when

A. prices of goods and services are falling slowly
B. there is high level of unemployment
C. prices of goods and services are rising rapidlyCorrect
D. prices of goods and services are rising slowly

Explanation

When prices rise rapidly (high inflation), money loses its value quickly, making it an unreliable store of value since it can't be used to serve that function.

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