Which of the following items serve as a medium of exchange in the United States?
I. $100 cash
II. 50 euros
III. the balance in your checking account
IV. a $1,000 corporate stock that you own
A) I only
B) I and II
C) I, II, and III
D) I and III
E) I, II, III, and IV

Question

Quizplus · Accepted Answer

I. $100 cash is a commonly accepted form of payment and serves as a medium of exchange.
II. 50 euros cannot be used as a medium of exchange in the United States as it is not the local currency.
III. The balance in your checking account can be easily transferred to another party as a form of payment, making it a medium of exchange.
IV. A $1,000 corporate stock that you own is not a commonly accepted form of payment and cannot serve as a medium of exchange.

Which of the Following Items Serve as a Medium of Exchange