Suppose a Group of People Decided to Set Up Their

question 46

Multiple Choice

Suppose a group of people decided to set up their own economic system with cartons of milk serving as money. If we decided to use this "liquid asset" as our medium of exchange and all prices were measured in cartons of milk, milk would still not be a good form of money mainly because it would not be a good:

• A) medium of exchange.
• B) unit of account.
• C) store of value.
• D) near-money.