203.3 Lesson - storeOfValue

Screen: storeOfValue

Headline: Four Stages of Money: Store of Value

Reward: 2

Text: The store of value is the second stage of money's evolution. When enough people want money because of its special qualities, it becomes a way to keep and save value over time, to transport hard earned wealth into the future.

As more people recognize a good as a good way to store value, the good's value increases as more people want it for this purpose.

Eventually, the value of a store of value will stop increasing as it becomes widely held and fewer new people want it as a store of value.

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QUIZ

Question: What determines the purchasing power of a store of value?

Answer: The number of people who want it as a store of value

Feedback: Nice work! The purchasing power of a store of value is determined by the number of people who want to use it as a way to store value. As more people want to use it for this purpose, the value of the store of value increases

Correct: true

Answer: The weather

Feedback: Sorry, the weather is definitely a factor in many things, but it's not quite the right answer for this question. Maybe try looking at other factors that could affect the value of a store of value

Correct: false

Answer: The color of the store of value

Feedback: I'm sorry to say that the color of a store of value probably doesn't have much of an effect on its purchasing power. It's definitely an interesting idea though! Maybe try considering other characteristics that could affect the value of a store of value.

Correct: false