ECONOMICS-W/MYECONLAB
7th Edition
ISBN: 9780134833125
Author: Hubbard
Publisher: PEARSON
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Chapter 25, Problem 25.1.7PA
To determine
The Chinese paper currency becoming commodity money or fiat money.
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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
Consider the following extract and answer the questions that follow. El Salvador Becomes the First Country To Adopt Bitcoin As Official Currency After the COVID-19 pandemic, the few remaining limitations to the digital world seem to have disappeared, including the conquest of cryptocurrencies. The definitive step seems to have been El Salvador's decision to transform Bitcoin into the official currency, being the first country in the world to do so. However, as evolved as President Nayib Bukele's decision seemed to be, the reality of bringing the heaviest digital currency into the real world seems destined for chaos. In announcing his move, Bukele claimed that the digital currency would help Salvadorans save an estimated "$400 million," which the government estimates is spent annually on remittance fees, NBC News explained. The government made the Chivo digital wallet available to citizens, claiming it would be available on the App Store and Google Play shortly before noon local time on…
Why can fiat money be successfully used as a currency despite the fact that it has no intrinsic value backing it up?
Chapter 25 Solutions
ECONOMICS-W/MYECONLAB
Ch. 25 - Prob. 25.1.1RQCh. 25 - Prob. 25.1.2RQCh. 25 - Prob. 25.1.3RQCh. 25 - Prob. 25.1.4RQCh. 25 - Prob. 25.1.5PACh. 25 - Prob. 25.1.6PACh. 25 - Prob. 25.1.7PACh. 25 - Prob. 25.1.8PACh. 25 - Prob. 25.1.9PACh. 25 - Prob. 25.2.1RQ
Ch. 25 - Prob. 25.2.2RQCh. 25 - Prob. 25.2.3PACh. 25 - Prob. 25.2.4PACh. 25 - Prob. 25.2.5PACh. 25 - Prob. 25.2.6PACh. 25 - Prob. 25.2.7PACh. 25 - Prob. 25.2.8PACh. 25 - Prob. 25.2.9PACh. 25 - Prob. 25.2.10PACh. 25 - Prob. 25.3.1RQCh. 25 - Prob. 25.3.2RQCh. 25 - Prob. 25.3.3RQCh. 25 - Prob. 25.3.4RQCh. 25 - Prob. 25.3.5PACh. 25 - Prob. 25.3.6PACh. 25 - Prob. 25.3.7PACh. 25 - Prob. 25.3.8PACh. 25 - Prob. 25.3.11PACh. 25 - Prob. 25.3.12PACh. 25 - Prob. 25.4.1RQCh. 25 - Prob. 25.4.2RQCh. 25 - Prob. 25.4.3RQCh. 25 - Prob. 25.4.4RQCh. 25 - Prob. 25.4.5PACh. 25 - Prob. 25.4.6PACh. 25 - Prob. 25.4.7PACh. 25 - Prob. 25.4.8PACh. 25 - Prob. 25.4.9PACh. 25 - Prob. 25.4.10PACh. 25 - Prob. 25.4.11PACh. 25 - Prob. 25.5.1RQCh. 25 - Prob. 25.5.2RQCh. 25 - Prob. 25.5.3RQCh. 25 - Prob. 25.5.4PACh. 25 - Prob. 25.5.5PACh. 25 - Prob. 25.5.6PACh. 25 - Prob. 25.5.7PACh. 25 - Prob. 25.5.8PACh. 25 - Prob. 25.5.9PACh. 25 - Prob. 25.5.10PACh. 25 - Prob. 25.1RDECh. 25 - Prob. 25.2RDECh. 25 - Prob. 25.3RDECh. 25 - Prob. 25.4RDECh. 25 - Prob. 25.5RDECh. 25 - Prob. 25.6RDE
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