Even when a particular monetary asset is NOT performing one of the functions of money well, people still use the asset because
A) it is still easier than relying on barter.
B) they can always earn interest from holding money.
C) once an asset is defined as money it is always money.
D) people expect money will come back at a later date.

Question

Quizplus · Accepted Answer

Even if a particular monetary asset is not performing one of the functions of money well, people still use it because it is easier than relying on barter. Barter requires a coincidence of wants, where two parties have to want what the other has to offer, which can be difficult to achieve. Therefore, even if an asset is not performing well as money, it still provides convenience for transactions.

Even When a Particular Monetary Asset Is NOT Performing One