The basic requirement of money is that it be
A) backed by precious metals.
B) authorized as legal tender by the nation's government.
C) generally accepted as a medium of exchange.
D) some form of debt or credit.
E) unlimited in quantity.

Question

Quizplus · Accepted Answer

The basic requirement of money is that it is generally accepted as a medium of exchange. This means that people must be willing to use it to buy goods and services from each other. Money does not need to be backed by precious metals, authorized as legal tender by the government, some form of debt or credit, or unlimited in quantity to meet this basic requirement.

The Basic Requirement of Money Is That It Be