A good can serve as money only if

Question

Quizplus · Accepted Answer

A good can only serve as money if it is widely accepted as a means of payment for transactions and debts. This acceptance by citizens is what gives it its value as a medium of exchange, not any intrinsic value or backing by precious metals. While government mandates and legal tender laws can help establish a good as money, ultimately it is the acceptance and use by individuals that determines its effectiveness as a currency. The fact that a good is consumed by everyone is not a requirement for it to serve as money.

A Good Can Serve as Money Only If