What Are the Two Features of Money That Distinguish It

question 29

Multiple Choice

What are the two features of money that distinguish it from all other goods in the economy?

• A)Money is government issued and it is redeemable for gold or silver.
• B)Money is accepted as a medium of exchange and it is the common unit of account used to express prices.
• C)Money is part of every barter transaction and it is divisible.
• D)Money is a common unit of account and it is also can be traded for other currencies at a guaranteed exchange rate.

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Definitions:

Survival

The state or act of continuing to live or exist, often despite adversity or challenging conditions.

Cognitive Development

The process of growth and change in intellectual capabilities, influencing how one perceives, thinks, and understands the world.

Trust Versus Mistrust

The first stage of Erik Erikson's theory of psychosocial development, where infants learn to trust their caregivers or develop mistrust based on the care they receive.

Concrete Operational

A stage in Piaget's theory of cognitive development (approximately age 7-12) where children gain the ability to think logically about concrete events and understand the concept of conservation.