Which of the following provides the best explanation of why money is valuable?
A) Money is valuable because it is indivisible.
B) Money is valuable because it is scarce.
C) Money is valuable because it is backed by precious metals, primarily gold and silver.
D) Money is valuable because it has intrinsic value, independent of its use as a means of exchange.

Question

Quizplus · Accepted Answer

Money is valuable because it is scarce. Money is only valuable because it is difficult to obtain, either through work or trade. If money were not scarce and could easily be obtained or created by anyone, it would lose its value as a means of exchange.

Which of the Following Provides the Best Explanation of Why