For something to be considered money,it must
A) be of low intrinsic value.
B) be of high intrinsic value.
C) have the backing of the government.
D) not be generally accepted as a medium of exchange.
E) be generally accepted as a medium of exchange.

Question

Quizplus · Accepted Answer

To be considered money, it must be generally accepted as a medium of exchange. This is the primary function of money - to facilitate transactions between individuals or businesses. Intrinsic value is not a requirement for money, as fiat currencies (such as the US dollar) have no inherent value but are still widely accepted as a medium of exchange. Government backing can provide additional trust and stability to a currency, but it is not a requirement for it to be considered money. The fact that something is not generally accepted as a medium of exchange would disqualify it from being money.

For Something to Be Considered Money,it Must