Multiple Select Question

Question

Select all that apply

Which of the following are reasons that currency and checkable deposits are money and hold value?
Multiple select question.

It is made from materials with intrinsic value.

The government has designated them as legal tender.

It has scarcity relative to its utility.

People accept them as money.

Answer 1

The reasons that currency and checkable deposits are considered money and hold value are:

• The government has designated them as legal tender.
• It has scarcity relative to its utility.
• People accept them as money.

The option "It is made from materials with intrinsic value" is not typically a reason that currency holds value in modern economies, as most contemporary currencies are fiat money, which do not have intrinsic value.