Certified Bitcoin Professional Practice Exam

Which function of money is gold most often used for?

1. Medium of Exchange

2. Store of Value

3. Unit of Account

4. Standard of Deferred Payment

The correct answer is: Store of Value

Gold is most often used as a store of value due to its intrinsic properties and historical significance. A store of value is an asset that maintains its value over time and can be used to preserve wealth. Gold has been valued for centuries and is widely recognized as a hedge against inflation and currency devaluation. Its scarcity, durability, and intrinsic worth make it a stable option for individuals looking to safeguard their wealth. While gold can serve other functions of money, such as a medium of exchange in smaller transactions or being a unit of account, these roles are not its primary use in contemporary economies. Many people do not use gold for everyday purchases or as a standard for pricing goods and services, but instead, they hold it as an investment or reserve to ensure that their wealth does not diminish over time. In this context, gold’s long-standing history as a reliable and stable asset reinforces its designation primarily as a store of value.