A good can serve as money only if
A)government mandates that the good must be accepted in payment of debts.
B)it is declared by authorities to be legal tender.
C)it has intrinsic value or if it is backed by precious metals.
D)citizens accept the good as a means of payment for transactions and debts.

Question

Quizplus · Accepted Answer

A good can only serve as money if people widely accept it as a means of payment for transactions and debts. While government mandates and legal tender laws can help establish a common currency, they alone are not sufficient for a good to be considered money. Intrinsic value or precious metal backing can also contribute to a good’s reliability as money, but ultimately its usefulness as a medium of exchange depends on widespread social acceptance.

A Good Can Serve as Money Only If