Option 1: Directly with the interest rate

This option is incorrect. The value of money does not directly vary with the interest rate. While interest rates can have an impact on the value of money indirectly by influencing inflation rates, the direct relationship between the value of money and interest rates is not valid.

Option 2: Directly with the price level

This option is incorrect. The value of money does not directly vary with the price level. In fact, the value of money tends to decrease as the price level increases due to inflation. As prices rise, the purchasing power of money decreases, leading to a decrease in its value.

Option 3: Directly with the volume of employment

This option is incorrect. The value of money does not directly vary with the volume of employment. While employment levels can have an impact on the value of money indirectly by influencing economic growth and inflation, the direct relationship between the value of money and employment volume is not valid.

Option 4: Inversely with the price level

This option is correct. The value of money tends to vary inversely with the price level. As the price level increases, the purchasing power of money decreases, resulting in a decrease in its value. Conversely, when the price level decreases, the