Which of the following is most critical for the maintenance of an efficient and productive economy?
A) money backed by gold or silver
B) steadily rising prices
C) an unlimited and unregulated supply of money
D) properly functioning money
E) a well-organized barter system

Question

Quizplus · Accepted Answer

Properly functioning money is critical for the maintenance of an efficient and productive economy. Money is a medium of exchange, and if it is not functioning properly, it can create difficulties in transactions, limiting trade and economic growth. The other options are not suitable as money backed by gold or silver limits the money supply, steadily rising prices (inflation) can lead to economic instability, and an unlimited and unregulated supply of money can lead to hyperinflation and depreciation of currency. A well-organized barter system may work on a small scale but cannot provide the wide range of goods and services required for a modern economy.

Which of the Following Is Most Critical for the Maintenance