Multiple choice

The essential characteristic of whatever serves as money is that it must

  1. be issued by the State

  2. be generally acceptable

  3. not be wholly fiduciary

  4. have some instrinsic value
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

General acceptability is money's essential feature - people must be willing to accept it in exchange for goods and services. Money does not need to be issued by the state (private currencies existed historically), does not require intrinsic value (fiat currency works), and can be wholly fiduciary.

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