The value of a cow today is the same as its value one year from now. Which of the following functions does the cow serve?

Medium of exchange

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Store of value

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Unit of account

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Standard of deferred payments

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Solution

The correct option is B
Store of value

As a store of value, the cow maintains its value over time.

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Similar questions

Reena a bought a house. While valuing her house, her grandmother valued it in terms of buffalo and carts.

What is the problem that is being faced in the valuation process?

(a) Lack of double coincidence of wants

(b) Lack of store of value

(d) Lack of standard for deferred payment

Read the following dialogue between Neeta and Sita:

Neeta: I want to shift to Singapore. What do I do with my house?

Sita: I can give you '10 antique pieces' for it.

Neeta: But, I do not need antique pieces.

Sita: Then, let the house remain where it is.

Which of the following problems is being faced by Neeta and Sita in their exchange process?

(a) Lack of medium of exchange

(b) Lack of transfer of value

(d) Lack of standard for deferred payment

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