Whatever functions as money must be
A)authorized by the government
B)accepted for deposit by banks
C)backed by precious metals like gold or silver
D)completely indestructible
E)limited in supply

Question

Quizplus · Accepted Answer

A key characteristic of money is that it must be limited in supply. If money were not limited, it would lose its value and purchasing power. The other choices are not necessary for something to function as money. Money does not have to be authorized by the government, accepted for deposit by banks, backed by precious metals, or completely indestructible.

Whatever Functions as Money Must Be