Whatever functions as money must be _____.
A)authorized by the government
B)accepted as deposit by banks
C)backed by precious metals like gold or silver
D)completely indestructible
E)limited in supply

Question

Quizplus · Accepted Answer

Money must be limited in supply in order to maintain its value and prevent inflation. The other choices are not necessarily true for something to function as money. While government authorization and acceptance by banks may make it easier to use, they are not essential. Backing by precious metals is also not necessary, as many modern currencies are not backed by any physical commodity. Complete indestructibility is not a requirement, as long as it can still function as a medium of exchange.

Whatever Functions as Money Must Be _____