Question

For something to be considered money, it must a. be of low intrinsic value. b. be of high intrinsic value. c. have the backing of the government. d. not be generally accepted as a medium of exchange. e. be generally accepted as a medium of exchange.

Answer 1

Answer:

e. Be generally accepted as a medium of exchange.

Explanation:

There are several different characteristics that money needs to have,

These include

• Potability (Must be portable to carry)
• Divisibility (must be able to make payments for different worth of goods)
• Uniformity (must be consistent and uniform)
• Durability (must not perish if kept over time)
• Acceptability (must be readily accepted by  economic agents)

Out of the options, money must be generally accepted as a medium of exchange or there will not be any transactions.

Hope that helps.