-
The ease at which an asset can be converted into a medium of exchange is known as
A. Profitability
B. Liquidity
C. Inflation
D. Wealth
-
Economists have documented Pacific island economies in which large rocks and boulders were used as money. While this may work for a group of people who only transact with others on the island, the rocks would not be a useful form of money in the world economy because:
A. Large rocks are not easily standardized
B. Large rocks are not easily divisible
C. Large rocks are not easy to carry
D. All of the above are true
-
In the mid 1800's, grain sellers in Chicago would deliver their grain to warehouses and receive a paper receipt that represented their claim on the grain in storage. These receipts became so widely used that grain traders began to use them as money, and they would use the warehouse receipts to settle debts and as collateral to secure short-term loans. Despite their widespread use as a form of currency, the warehouse receipts were not fiat money because:
A. Grain is a commodity, so the receipts were commodity money and not fiat money
B. The receipts were not legal tender formally recognized by a government
-
-
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
