The Basic Requirement of Money Is That It Be

question 34

Multiple Choice

The basic requirement of money is that it be

• A) backed by precious metals.
• B) authorized as legal tender by the nation's government.
• C) generally accepted as a medium of exchange.
• D) some form of debt or credit.
• E) unlimited in quantity.

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Definitions:

Elementary School

An educational institution for children that provides the first stage of compulsory education.

Hypothesis

A proposed explanation for a phenomenon, set forth as a basis for further investigation.

Opinion

A personal view, attitude, or appraisal formed about something, not necessarily based on fact or knowledge.

Scientific Theories

Systematically organized knowledge applicable in a relatively wide variety of circumstances, especially a system of assumptions, accepted principles, and rules of procedure devised to analyze, predict, or explain the nature or behavior of a specified set of phenomena.