Due to which of the following reasons can money be differentiated from other physical assets that can perform the function of store of value?

The correct answer is Money is easy to store. Key Points

• Money can be differentiated from other physical assets that can perform the function of store of value due to the following reasons:
• Easy to store:
  • Money can be stored in a variety of forms, including cash, bank deposits, or digital wallets.
  • It does not require any specialized storage or maintenance.
  • Other physical assets like real estate or art may require specialized storage facilities and maintenance.

Additional Information

• Liquidity:
  • Money is highly liquid and can be easily converted into cash without any loss in its value.
  • Other physical assets like real estate or gold may have a high store of value but may not be easily convertible into cash.
• Common acceptability:
  • Money is universally accepted and recognized as a medium of exchange.
  • It is accepted by all parties in a transaction, making it easier to conduct trade and commerce.
  • Other physical assets may not have the same level of acceptance.
• Neutral:
  • Money is neutral and does not carry any emotional or personal attachment.
  • It is a standardized form of currency that is free from any personal biases or opinions.
  • Other physical assets may have sentimental value attached to them.