Question

The economic definition of money​ is__________.A. A good that has intrinsic value.B. Anything authorized by the government to be used in an exchange.C. Anything of value owned by a person or a firm.D. Any asset that people are generally willing to accept in exchange for goods and services.

Answer 1

The correct answer is option D.

Step-by-step explanation:

Money can be defined as any asset that is generally accepted by people in exchange for goods and services. The basic function of money is to act as a medium of exchange.

It reduces the transaction cost in exchange for goods and services by eliminating the double coincidence of wants.

Money can be of different types such as commodity money, fiat money, etc.

Other functions of money are to act as a store of value and unit of account.