Which of the following is the best definition of money?
A)anything generally accepted as payment for goods or repayment of debt
B)anything that can be converted to a liquid asset
C)a national currency that is backed by gold or other precious metals
D)paper or coin currency that is produced by the Federal Reserve

Question

Quizplus · Accepted Answer

Money is generally accepted as payment for goods and services or repayment of debt. It can take the form of cash, checks, credit or debit cards, or any other easily exchangeable asset. Money serves as a medium of exchange, unit of account, and store of value in economic transactions.

Option B is close, but not complete. Money can be easily converted into a liquid asset, but not all liquid assets are money.

Option C is outdated as most modern currencies are not backed by precious metals.

Option D only refers to the production of paper and coin currency by the Federal Reserve, but money includes not only cash but other forms of payment as well.

Which of the Following Is the Best Definition of Money