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Pebbles meet several of the tests money must pass. Why would they still fail as money?
AThey cannot be divided into smaller usable parts
BThey are so widely available that they hold no value
CThey spoil quickly once they are left in the open
DThey are too bulky to be carried from place to place
Answer & Solution
Correct answer: B. They are so widely available that they hold no value
1. Money must be scarce enough to have some value, but not so scarce that it is unavailable.
2. Pebbles lie at the wrong end of that range because they are widely available everywhere.
3. Anything obtainable for free by anyone carries no value in exchange, so it cannot buy anything.
4. Pebbles are in fact small, splittable and long lasting, so divisibility, portability and spoiling are not the flaw.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 15 "Understanding Money and Financial Institutions", section 15.1 Show Me the Money_
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