The real value of money is:
A) its foreign exchange rate.
B) its purchasing power.
C) set by the government that creates the money.
D) determined by the material out of which the money is made.

Question

Quizplus · Accepted Answer

The real value of money is best described by its purchasing power, which refers to the quantity of goods and services that can be purchased with a unit of currency. This concept reflects the true value of money in terms of economic transactions, rather than its nominal value or the material it is made from.

The Real Value of Money Is