A new nation has emerged and needs to create a currency. Which of these characteristics would make it a medium of exchange?
A. • if other nations begin to use it
B. • if the nation's economy is based on it
C. • if the currency will hold its value over time
D. if it is accepted with a known currency, like the dollar
A. • if other nations begin to use it
A currency becomes a medium of exchange when it is widely accepted as a form of payment by other nations, businesses, and individuals. This widespread acceptance allows for transactions to take place smoothly and efficiently.