Which of the following statements is true ?

Question

Quizplus · Accepted Answer

A) Money must be relatively "scarce" if it is to have value - This is true because scarcity gives money its value. If money is abundant and easily accessible, its value decreases.
B) Money must be divisible and portable - This is also true because money needs to be easily divided into smaller units and easily transported from one person to another.
C) M1 is the narrowest definition of money - This statement is not relevant to the other two statements and therefore does not affect the answer. However, it is important to note that M1 is indeed the narrowest definition of money, which includes only the most liquid forms of money such as currency, checking account deposits, and traveler's checks.

Which of the Following Statements Is True