For an asset to be a "means of payment" means the asset
A)is valuable and backed by gold.
B)is valuable and backed by the government.
C)can be used to settle a debt.
D)requires a double coincidence of wants.
E)must be used when bartering.

Question

Quizplus · Accepted Answer

A "means of payment" is any asset that can be used to settle a debt or make a purchase. This means that the asset must be accepted as a form of payment by others. Therefore, option C is the best choice as it accurately describes what it means for an asset to be a "means of payment." Option A is incorrect because being backed by gold is not a requirement for an asset to be a means of payment. Option B may be true for some assets, such as government-issued currency, but is not true for all assets that can be used as a means of payment. Option D is incorrect because a double coincidence of wants is a condition for bartering and not for using an asset as a means of payment. Option E is also incorrect because not all means of payment are used in the context of bartering.

For an Asset to Be a "Means of Payment" Means