Which of the following characterizes currency?
A)It has intrinsic value.
B)It has no intrinsic value.
C)It may be used as a medium of exchange but is not legal tender.
D)It performs all the functions of money except providing a unit of account.

Question

Quizplus · Accepted Answer

Currency is a medium of exchange that is widely accepted, but it has no intrinsic value. Its value is derived from the trust people place in the issuing authority, such as a government or central bank. It can be used as legal tender, but its use is not required by law. Currency performs all the functions of money, including being a medium of exchange, unit of account, and store of value.

Which of the Following Characterizes Currency