If individuals will no longer accept a currency, is it still considered to be money?
a. No, because one of the main characteristics necessary for something to serve as money is that it must be generally acceptable.
b. No, because of Gresham's Law.
c. Yes, because the government identifies it as legal tender.
d. Yes, because one of the main characteristics necessary for something to serve as money is that it must be generally acceptable.
Question 2
The transactions demand for money increases when more people want to hold some of their wealth in the form of money to reduce the risks associated with unexpected emergencies.
a. True
b. False
Indicate whether the statement is true or false
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