To be accepted as money, an item must perform all of the following functions EXCEPT
A) serve as a store of value.
B) be easily reproduced.
C) be a medium of exchange.
D) serve as a standard of deferred payment.

Question

Quizplus · Accepted Answer

To be accepted as money, an item must serve as a store of value, be a medium of exchange, and serve as a standard of deferred payment. However, if an item is easily reproduced, it would lead to inflation and lose its value as a medium of exchange and a store of value. Therefore, being easily reproduced disqualifies an item from being accepted as money.

To Be Accepted as Money, an Item Must Perform All