Question

The value and functionality of money are determined by the_____________.

A. lack of credibility in other financial assets.
B. general acceptability to other people.
C. regulations defined by the Fed.
D. credibility in other financial assets.

Answer 1

The correct answer is letter "B": general acceptability to other people.

Step-by-step explanation:

Money has three functions: medium of exchange, store of value, and unit of account. Money is a medium of exchange because it allows individuals to make their transactions easily through a currency that is accepted between the parties involved.

Money is a store of value because keeping large quantities of money allows individuals to increase their wealth. Finally, money is a unit of account because it allows providing a numerical value to different types of resources, goods, and services.