WAEC - Economics (2014 - No. 41)
Which of the following functions of money is mostly affected during inflation?
Medium of exchange
Unit of Account
Store of value
Standard of deferred payment
Explication
Inflation erodes the value of money; it does not keep its value. Something that costs a certain amount today will cost more tomorrow. This affects everything from the timing of transactions to the amount required for future payments (interest rates).