Suppose a group of people decided to create their own economic system with cartons of milk serving as money. If we decided to use this “liquid asset” as our medium of exchange and all prices were measured in cartons of milk, milk would still not be a good form of money because it would not be a good:  A)unit of account. B)medium of exchange. C)store of value. D)near-money.

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Asked Apr 11, 2019
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Suppose a group of people decided to create their own economic system with cartons of milk serving as money. If we decided to use this “liquid asset” as our medium of exchange and all prices were measured in cartons of milk, milk would still not be a good form of money because it would not be a good:

 

 

A)

unit of account.

 

B)

medium of exchange.

 

C)

store of value.

 

D)

near-money.

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Expert Answer

Step 1

Money: Money can be anything which is accepted by the people as a medium of exchange or in repayment of debts.

Step 2

Option C, store of value.

Milk and other food items which will command a value cannot be...

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