Money would cease to be a good store of value when

Step 1: Analyze the question The question asks when money stops being a good store of value. A store of value means money can be kept today and still buy the same amount of goods and services in the future. So we are looking for the situation in which money loses its purchasing power.

Step 2: Explain the concept

• Money's purchasing power depends on the price level.
• When prices rise, each naira buys fewer goods. This is inflation.
• When inflation is rapid, money held today is worth much less tomorrow, so people no longer want to hold it. In extreme cases (hyperinflation), people switch to goods, foreign currency, or other assets.

Step 3: Evaluate the options

• A. Prices falling slowly: Money's purchasing power increases slightly, so it remains a good store of value. Wrong.
• B. High unemployment: This affects incomes and jobs, not the purchasing power of money directly. Wrong.
• C. Prices rising rapidly: Purchasing power falls quickly, so money loses its value as a store of value. Correct.
• D. Prices rising slowly: Mild inflation erodes value only a little, so money still works reasonably well as a store of value. Wrong.

Step 4: Answer The correct option is C.

Exam tip: For "store of value" questions, think inflation = bad. The faster prices rise, the faster money loses value. Remember also that deflation (falling prices) does not hurt money's store-of-value function, though it causes other economic problems.