To Be Accepted as Money, an Item Must Perform All

question 309

Multiple Choice

To be accepted as money, an item must perform all of the following functions EXCEPT

• A) serve as a store of value.
• B) be easily reproduced.
• C) be a medium of exchange.
• D) serve as a standard of deferred payment.

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Definitions:

Industrialized

Pertains to countries or regions that have developed extensive manufacturing industry as the predominant sector of their economy, typified by technological innovation and large-scale production.

Coal Deposits

Natural accumulations of coal, which is a combustible black or brownish-black sedimentary rock used primarily for electricity generation and steel production.

Political Economy

An interdisciplinary branch that studies the relationships between individuals, governments, and public policy, focusing on the economic implications of political actions.

Adam Smith

A Scottish economist, philosopher, and author known for his theories on free market economics presented in his book "The Wealth of Nations."