What is the most important factor for Federal Reserve currency to be accepted as money?
A) its acceptance by businesses and households in the United States in exchange for goods and services
B) its designation as legal tender by the federal government
C) the willingness of the federal government to accept it in exchange for an equivalent amount of gold or silver coins
D) the willingness of foreign businesses and banks to accept it in exchange for goods and services

Question

Quizplus · Accepted Answer

The most important factor for Federal Reserve currency to be accepted as money is its acceptance by businesses and households in the United States in exchange for goods and services. This widespread acceptance ensures its utility as a medium of exchange, which is a key characteristic of money.

What Is the Most Important Factor for Federal Reserve Currency