Asked by Chris Hughes on May 09, 2024
Verified
In order for something to be used as money,it must be _____.
A) issued by the government
B) issued by banks
C) declared to be money
D) generally acceptable
E) made of something valuable
Money
Any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.
Issued
Issued generally refers to the official distribution or release of items such as documents, currency, or securities by an authoritative entity.
Declared
Stated or made known officially or publicly.
- Discern the operations and characteristics of money.
- Understand the criteria for something to function as money in an economy.
Verified Answer
GE
Gbenade EdorhMay 11, 2024
Final Answer :
D
Explanation :
Something can only function as money if it is generally acceptable as a medium of exchange. While government and banks can issue currencies, they only become money when people accept them as such. Valuable materials (such as gold or silver) used as currency can only be considered money if they are widely accepted as a medium of exchange. Therefore, the key criterion for something to be money is its general acceptability.
Learning Objectives
- Discern the operations and characteristics of money.
- Understand the criteria for something to function as money in an economy.