The value of money is determined by
A)people's belief that it is worth something
B)the amount of precious metal that the government holds to back the money
C)the money's market value as a commodity
D)the rate of interest,which is the price paid to borrow money
E)its ability to function as a unit of account

Question

Quizplus · Accepted Answer

The value of money is determined by people's belief that it is worth something. Money only has value because people believe that it does and are willing to accept it in exchange for goods and services. While factors such as government policies, commodity prices, and interest rates can influence the value of money, ultimately it is the collective belief and trust in its worth that gives it value.

The Value of Money Is Determined by