It is necessary for a monetary unit to have an intrinsic value as a commodity to be accepted as a medium of exchange.

Question

Quizplus · Accepted Answer

A monetary unit does not need to have intrinsic value as a commodity to be accepted as a medium of exchange; it primarily requires trust and acceptance by the people who use it. For example, fiat currencies like the US dollar or the Euro have no intrinsic value but are accepted widely as a medium of exchange.

It Is Necessary for a Monetary Unit to Have an Intrinsic