Anything can be money as long as it
A)has low transactions costs.
B)is acceptable as a medium of exchange.
C)meets the double coincidence of wants.
D)has intrinsic worth.
E)is not too bulky.

Question

Quizplus · Accepted Answer

Money needs to be acceptable as a medium of exchange, meaning that people are willing to use it in transactions. While low transaction costs and not being too bulky are also important characteristics for money, they are not sufficient on their own. The double coincidence of wants is not necessary for money, as money acts as an intermediary in transactions and eliminates the need for direct exchange of goods and services. Intrinsic worth is also not necessary, as fiat money has value simply because people trust in its ability to be exchanged for goods and services.

Anything Can Be Money as Long as It