What will happen if a nation's official money fails to serve as a medium of exchange?

Question

Quizplus · Accepted Answer

If a nation's official money fails to serve as a medium of exchange, then resources must be diverted from production to exchange. This means people will have to spend time finding alternative ways to exchange goods and services, which will reduce their ability to produce other things. Hence, economic efficiency will decrease. Additionally, transactions costs of exchange may also increase, and there will be less completion of barter exchanges.

What Will Happen If a Nation's Official Money Fails to Serve