Whatever serves as a medium of exchange is _____
A) generally accepted in return for goods and services.
B) money as long as it is also the best such medium of exchange available.
C) money as long as it is the most widely used currency.
D) money as long as it is not also legal tender.
E) not money unless it continues to be backed by its issuing institution.

Question

Quizplus · Accepted Answer

The medium of exchange must be generally accepted in return for goods and services to be considered money. Money is not limited to a specific currency or backed by an institution; it is any widely accepted means of exchange. Legal tender laws reinforce this widespread acceptance by requiring that creditors accept the designated currency as payment for debts.

Whatever Serves as a Medium of Exchange Is _____