Money should have intrinsic value to be accepted in exchange for goods and services.

Question

Quizplus · Accepted Answer

Money does not necessarily need to have intrinsic value as long as people agree to accept it as a means of exchange for goods and services. The value of money is based on its purchasing power and the trust people have in the issuing authority. For example, modern-day currencies such as the US dollar and the euro are backed by the government's promise to honor its value and are widely accepted in exchange for goods and services.

Money Should Have Intrinsic Value to Be Accepted in Exchange