To be considered money,a financial asset must

Question

Quizplus · Accepted Answer

Money is defined as a medium of exchange, a store of value, and a standard of value. This means that it must be accepted in exchange for goods and services, hold its value over time, and be used to measure the worth or price of items. It does not necessarily need to be convertible into gold or silver, issued by the Federal Reserve System, or kept in banks to be considered money. Fractional reserve banking is a method by which banks create money through the lending of deposits, but it is not a necessary component of what defines money.

To Be Considered Money,a Financial Asset Must