A space colony on the moon initially used moon rocks as currency, but they became heavy and cumbersome to use. Now most moon citizens store their rocks in a guarded storage facility and receive receipts they can trade for goods and services and/or exchange back for moon rocks at any time. All receipts stand for moon rocks actually held in storage. If there are 10 million moon rocks stored, there will be exactly 10 million moon rocks' worth of receipts circulating. In other words, the moon's currency is: (We'll use this information again in the next question.) A. commodity money B. fully backed C. legal tender D. fiat money
A space colony on the moon initially used moon rocks as currency, but they became heavy and cumbersome to use. Now most moon citizens store their rocks in a guarded storage facility and receive receipts they can trade for goods and services and/or exchange back for moon rocks at any time.
All receipts stand for moon rocks actually held in storage. If there are 10 million moon rocks stored, there will be exactly 10 million moon rocks' worth of receipts circulating.
In other words, the moon's currency is:
(We'll use this information again in the next question.)
Introduction
As a means of economic exchange, money is a good that is widely acknowledged. It serves as the medium through which values and prices are expressed. It facilitates trade by moving from individual to individual and from country to country and it serves as the primary indicator of wealth.
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