Which of the following influences the value of money?
A) The supply of money
B) Barter
C) Durability
D) Divisibility
E) Portability

Question

Quizplus · Accepted Answer

The supply of money is one of the most important factors that influences the value of money. If the supply of money is too high, the value of money will decrease because there is too much of it in circulation. On the other hand, if the supply of money is too low, the value of money will increase because it is scarce. Therefore, the supply of money is closely monitored by governments and central banks to ensure that it remains stable and does not cause inflation or deflation.

Which of the Following Influences the Value of Money