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"Gold may be a better store of value than US money,but would function as a poorer...

"Gold may be a better store of value than US money,but would function as a poorer medium of exchange and unit of account than US money." Do you agree with this statement? If yes, explain why you agree. If no, explain why disagree.

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Answer #1

Money is called money becasue of its funcitons like store of value, medium of exchange and unit of account. Gold is a precious metal which has store of value and can be treated as investments. One can gain by changes in price fluctuations. But it is not so portable if used as medium of exchange and for unit of account it has to be available in various denominations. These two propeties are not easy with gold. Gold also loss its value due to wear and tear loss.

Gold is a commodity money.

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