Gold Is a Perfect Medium of Exchange and Measure of Value

question 54

Multiple Choice

Gold is a perfect medium of exchange and measure of value because of its:

• A) divisibility, portability, scarcity, and homogeneity .
• B) divisibility and durability.
• C) durability and relative scarcity.
• D) durability and homogeneity.

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Definitions:

Directly

In a straightforward or unmediated way, often referring to a direct cause and effect relationship or manner of communication.

Indirectly

In a way that is not directly evident or straightforward; involving an intermediary step or process.

Capital Stock

The total amount of physical goods or capital assets that are available for use in the production of goods and services.

Market Value

The present cost for purchasing or selling an asset or service in the market.