Functions of Money in Practice

Both physical currency (e.g., banknotes and coins) and bank deposits (e.g., the balance in a checking account) fulfill the same core economic functions. Which statement best analyzes a key practical distinction between them when they are used as a medium of exchange?

Shared Roles of Different Money Forms

A key difference between physical currency and bank deposits is that only physical currency can function as a store of value, as bank deposits are merely digital records.