To be considered money, an asset must be
A) backed by gold or other precious metals.
B) widely accepted as a means of payment.
C) currency.
D) Each of these answers is correct.

Question

Quizplus · Accepted Answer

An asset can be considered money if it is widely accepted as a means of payment. Gold and other precious metals were historically used as a backing for currency, but this is no longer the case for most modern currencies. Currency itself is a form of money, but not all forms of money are currency. Therefore, option B is the best answer.

To Be Considered Money, an Asset Must Be