b. Salt was used in many European countries as a medium of exchange. c. For a brief time, Germany used paper money (the "Rye Mark") that could be redeemed for a certain amount of rye, a type of grain. d. The town of Ithaca, New York, prints its own cur- rency, the Ithaca HOURS, which can be used to pur- chase local goods and services.

b. Salt was used in many European countries as a medium of exchange. c. For a brief time, Germany used paper money (the "Rye Mark") that could be redeemed for a certain amount of rye, a type of grain. d. The town of Ithaca, New York, prints its own cur- rency, the Ithaca HOURS, which can be used to pur- chase local goods and services.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter27: Money And Banking

Section: Chapter Questions

Problem 21CTQ: The Bring it Home Feature discusses the use of cowrie shells as money. Although we no longer use...

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Question

(2.) There are three types of money: commodity money,
commodity-backed money, and fiat money. Which type
of money is used in each of the following situations?

b. Salt was used in many European countries as a
medium of exchange.
c. For a brief time, Germany used paper money (the
"Rye Mark") that could be redeemed for a certain
amount of rye, a type of grain.
d. The town of Ithaca, New York, prints its own cur-
rency, the Ithaca HOURS, which can be used to pur-
chase local goods and services.

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