The basic requirement for an item to function as money is that it be

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The basic requirement for an item to function as money is that it is generally accepted as a medium of exchange. While being backed by precious metals or authorized as legal tender by the government can add credibility to a form of money, it is not a basic requirement. Being a form of debt or credit also does not meet the basic requirement of being generally accepted as a medium of exchange.

The Basic Requirement for an Item to Function as Money