To qualify as "money," a commodity must
A) be valuable.
B) be nonperishable.
C) be accepted as a medium of exchange.
D) be a precious metal such as gold or silver.

Question

Quizplus · Accepted Answer

The most important characteristic of money is that it is accepted as a medium of exchange. While it is helpful for money to be valuable, nonperishable, and based on a precious metal, these characteristics are not essential for something to function as money. For example, paper currency is not valuable in and of itself, but it is accepted as a medium of exchange because people have confidence in its worth.

To Qualify as "Money," a Commodity Must