What is a characteristic of paper money?
A) It has a high intrinsic value.
B) It hinders efficient allocation of resources.
C) It is valuable because it is generally accepted in trade.
D) It is valuable only because of the legal tender requirement.

Question

Quizplus · Accepted Answer

Paper money does not have much intrinsic value. Its value comes from the fact that it is widely accepted in trade and holds purchasing power. It is a convenient and efficient medium of exchange.

What Is a Characteristic of Paper Money