Question

money is defined as any good that and . a. can serve as collateral when applying for a loan; can be used to start a business b. can be used for the repayment of debt; can be used as a store of value c. is widely accepted for purposes of exchange; can be used when making credit decisions d. is widely accepted for purposes of exchange; the repayment of debt

Answer 1

Money is an item widely accepted for exchange, stores value, and can repay debt. It includes commodity and fiat money, and liquidity determines its ease of use in transactions.

Step-by-step explanation:

Money is defined as any good that is widely accepted for purposes of exchange and serves as a store of value. This includes being used for the repayment of debt and as a standard of deferred payment. Money's main functions are to act as a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.

Commodity money has intrinsic value and fiat money is government-declared legal tender without intrinsic value. Liquidity is essential in money, determining how quickly a financial asset can be used to purchase goods and services.