Firstly what is the word store of value;store of value is something that maintain its worth both in the present and the future.Money is a type of assets in an economy that you can use to buy goods and services from other people or businesses.One of the functions of money in an economy is that it's serves as a store of value.
A store of value is something people use to transfer purchasing power from the present to the future.
While money is an asset that can store value, and also Gold and silver for example, acts as store of value.
Since money is accepted as a store of value, trade is much more efficient.When an individual or business accepts money in exchange for a goods and services, the seller can store the money in a bank account and retrieve it later in the future.
In fact, in general, there are three functions of money, and what you said was one of the three functions of money, while you didn't mention the other two. The first function of money is as a medium of exchange, the second is as a unit of account and the third is as a means of storing value. Now, the derivative function of each money must also be known mate, where In its development, money is also used as a tool in the economic system so that it has other functions apart from what I have mentioned above.
- As a means of transferring wealth
- As a driver of economic activity
- As a means of payment
- As a means of hoarding wealth
In addition, each community must also know the types of money in circulation in their respective environments, such as types of money based on their material, namely coins and banknotes. As for the type of money based on the issuing institution, there are also two, namely, currency that is often used for payments by everyone and the other one is demand deposits, deposits or checks issued by the bank.
One more thing, the type of money based on its value is also divided into full bodied money and token money. Full money is money whose value is equal to the material used in its manufacture. For example, money made of gold has the same value as the gold from which it is made. Meanwhile, sign money is money whose value is higher than the value of the material used to make it. Source:
bmoney.id