In order for something to be used as money, it must be _____
A) made of paper.
B) issued by banks.
C) declared to be money.
D) generally acceptable.
E) made of something valuable.

Question

Quizplus · Accepted Answer

For something to be used as money, it must be generally acceptable, which means that it must be recognized by most people as a means of payment or exchange for goods and services. While paper money can meet this requirement, it is not necessary for money to be made of paper. Issuance by banks or declaration by a government as money may enhance acceptability, but it alone does not make something money. The value of money is ultimately determined by social convention and demand, rather than the intrinsic value of the material or substance from which it is made.

In Order for Something to Be Used as Money, It