Which concept refers to keeping money's value relatively stable over time?

Which concept refers to keeping money's value relatively stable over time?

• A. Homogeneous
• B. Medium of Exchange
• C. Stability
• D. E-commerce

Answer: (C)

This question tests price stability—the idea that money keeps its purchasing power relatively constant over time. When money’s value is stable, people can save and plan for the future because the amount of goods or services money can buy doesn’t change dramatically from year to year. Central banks strive for this stability by managing monetary policy to control inflation and keep prices steady. Why the term fits best: stability directly conveys maintaining that value over time. The other terms describe different ideas: homogeneous refers to uniform composition, not value over time; a medium of exchange is about money’s role in facilitating transactions, not preserving value; and e-commerce is online buying and selling, unrelated to how money retains value.

This question tests price stability—the idea that money keeps its purchasing power relatively constant over time. When money’s value is stable, people can save and plan for the future because the amount of goods or services money can buy doesn’t change dramatically from year to year. Central banks strive for this stability by managing monetary policy to control inflation and keep prices steady.

Why the term fits best: stability directly conveys maintaining that value over time. The other terms describe different ideas: homogeneous refers to uniform composition, not value over time; a medium of exchange is about money’s role in facilitating transactions, not preserving value; and e-commerce is online buying and selling, unrelated to how money retains value.