Gold is a perfect medium of exchange and measure of value because of its:
A) divisibility, portability, and homogeneity.
B) divisibility and durability.
C) durability and relative scarcity.
D) durability and homogeneity.

Question

Quizplus · Accepted Answer

Divisibility means that gold can be easily divided into smaller units of value, such as coins or bars, which allows it to accommodate transactions of varying sizes. Portability means that gold is easy to transport, which makes it convenient for conducting trade across long distances. Homogeneity means that all units of gold are identical in weight and purity, ensuring that they have equal value. Therefore, gold has all three characteristics that make it an ideal medium of exchange and measure of value.

Gold Is a Perfect Medium of Exchange and Measure of Value