Which of the following statements is true of money?
A) Paper money was invented around 1000 AD in China.
B) Fiat money was used in the barter system of exchange.
C) Paper money was the first form of money to be invented.
D) One of the limitations of paper money is that it does not function as a store of value.

Question

Quizplus · Accepted Answer

Paper money was first invented in China around 1000 AD during the Song Dynasty.

Answer: D 
 One of the limitations of paper money is that it may lose its value over time due to inflation, making it less effective as a store of value.

Which of the Following Statements Is True of Money