To be considered money,an asset must be:
A) backed by gold or other precious metals.
B) widely accepted as a means of payment.
C) currency.
D) issued by the Federal Reserve or a major commercial bank in the United States.

Question

Quizplus · Accepted Answer

For an asset to be considered as money, it should be widely accepted as a medium of exchange. In other words, it should be seen as a means of payment that is easily acceptable by sellers and buyers. The backing of precious metals or the issuance by specific entities may be factors in establishing trust or credibility, but they are not necessary criteria for something to be considered money. Similarly, not all forms of currency can be considered money if they fail to fulfill the basic criteria of acceptance and exchangeability.

To Be Considered Money,an Asset Must Be