Money is formally defined as:

Question

a. A financial claim on the government.
b. An asset that is generally accepted in exchange for goods and services and/or repayment of debt.
c. A currency issued by a government or central bank.
d. An asset whose value is stated by the government or central bank.

Answer 1

The most accurate formal definition of money among the options provided is:

b. An asset that is generally accepted in exchange for goods and services and/or repayment of debt.

This definition encompasses the broader functions of money, including its roles as a medium of exchange, a unit of account, and a store of value. While the other options touch on aspects of money (such as currency and government backing), option b captures the essence of what money is meant to do in an economic context.