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

Question

Quizplus · Accepted Answer

The most basic requirement for an item to function as money is that it is generally accepted as a medium of exchange, meaning that people are willing to accept it in exchange for goods and services. While some forms of money in the past have been backed by precious metals or authorized as legal tender by governments, those are not necessary for something to be considered money. Debt or credit, on the other hand, are not themselves money but rather financial instruments that can be used to facilitate transactions involving money.

The Basic Requirement for an Item to Function as Money