Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 27, Problem 21CTQ
The Bring it Home Feature discusses the use of cowrie shells as money. Although we no longer use cowrie shells as money, do you think other forms of commodity monies are possible? What role might technology play in our definition of money?
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. P’Dim and P’Green discusses the use of cowrie shells as money. Although cowrie shells are no longer used as money, do you think other forms of commodity monies are possible? What role might technology play in our definition of money?
Personal possession of currency is prohibited in U.S. prisons, although, in practice, prisoners still exchange goods and services. U.S. prisoners used cigarettes as a medium of exchange until smoking was banned in U.S. prisons in 2003. After 2003, prisoners looked to other items on the commissary menu to facilitate exchange. In 2008, the Wall Street Journal reported that energy bars had caught on as money in some U.S. prisons. One important difference between using energy bars and using dollars as money is that____ have intrinsic value.
Energy bars are an example of ___ money.
How does an increase in the money supply get into the hands of consumers? What do they do with it?
Chapter 27 Solutions
Principles of Economics 2e
Ch. 27 - In many casinos, a person buys chips to use for...Ch. 27 - Can you name some item that is a store of value,...Ch. 27 - If you are out shopping for clothes and books,...Ch. 27 - For the following list of items, indicate If they...Ch. 27 - Explain why the money listed under assets on a...Ch. 27 - Imagine that you are in the position of buying...Ch. 27 - What are the four functions that money serves?Ch. 27 - How does the existence of money simplify the...Ch. 27 - What is the double-coincidence of wants?Ch. 27 - What components of money do we count as part of...
Ch. 27 - What components of money do we count in M2?Ch. 27 - Why do we call a bank a financial intermediary?Ch. 27 - What does a balance sheet show?Ch. 27 - What are a banks assets? What are its liabilities?Ch. 27 - How do you calculate a banks net worth?Ch. 27 - How can a bank end up with negative net worth?Ch. 27 - What is the asset-liability time mismatch that all...Ch. 27 - What is the risk if a bank does not diversify its...Ch. 27 - How do banks create money?Ch. 27 - What is the formula for the money multiplier?Ch. 27 - The Bring it Home Feature discusses the use of...Ch. 27 - Imagine that you are a barber in a world without...Ch. 27 - Explain why think the Federal Reserve Bank tracks...Ch. 27 - The total amount of U.S. currency in circulation...Ch. 27 - Explain the difference between how you would...Ch. 27 - Should banks have to hold 100 of their deposits?...Ch. 27 - Explain what will happen to the money multiplier...Ch. 27 - What do you think the Federal Reserve Bank did to...Ch. 27 - If you take 100 out of your piggy bank and deposit...Ch. 27 - A bank has deposits of 400. It holds reserves of...Ch. 27 - Humongous Bank is the only bank in the economy....
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Similar questions
- Despite the fact that personal possession of currency is not allowed by U.S. prisons, in reality, incarcerated people still exchange goods and services. Until 2003, the year in which the U.S. government banned smoking in federal penitentiaries, cigarettes were the preferred medium of exchange among prisoners. A main difference between using cigarettes and using dollars as money is that have intrinsic value. Cigarettes are an example of money.arrow_forwardMoney is a means of lowering the transaction costs of making exchanges. Do you agree or disagree? Explain your answer.arrow_forwardWhich of the below statements DOES NOT CORRECTLY capture the meaning of the word "money" as economists use the term, and as Charles Wheelan explains the term? Group of answer choices Whatever serves as money must be available in abundance, and must not be scarce. It serves as a medium of exchange, something that facilitates trade and transactions. It serves as a unit of account, so that the costs of all kinds of goods and services can be measured can be compared using one scale. Whatever serves as money must be portable and durable.arrow_forward
- The Bring it Home Feature discusses the use ofcowrie shells as money. Although we no longer usecowrie shells as money, do you think other forms ofcommodity monies are possible? What role mighttechnology play in our definition of money?arrow_forwardSuppose a group of people decided to create their own economic system with cartons of milk serving as money. If we decided to use this “liquid asset” as our medium of exchange and all prices were measured in cartons of milk, milk would still not be a good form of money because it would not be a good: A) unit of account. B) medium of exchange. C) store of value. D) near-money.arrow_forwardare you in favour or against the abolition of cash?whyarrow_forward
- In a less-developed economy, cattle is widely accepted as payment for goods and services. Nearly all goods and services are priced in terms of cattle; however, cows vary in quality, become less valuable with age, and are difficult to move over long distances. Which of the following functions of money do cattle provide? Select the two correct answers. portability uniformity medium of exchange unit of account store of valuearrow_forwardExplain the THREE (3) types of demand for money.arrow_forwardIn economic terms, define what money is.arrow_forward
- Which of the following is an example of fiat money? Group of answer choices A U.S. one-hundred dollar bill Cigarettes A government bond An ounce of goldarrow_forwardersonal possession of currency is prohibited in U.S. prisons, although, in practice, prisoners still exchange goods and services. U.S. prisoners used cigarettes as a medium of exchange until smoking was banned in U.S. prisons in 2003. After 2003, prisoners looked to other items on the commissary menu to facilitate exchange. In 2008, the Wall Street Journal reported that energy bars had caught on as money in some U.S. prisons. One important difference between using energy bars and using dollars as money is thatenergy bars have intrinsic value. Energy bars are an example ofcommodity money.arrow_forwardWhat is Token Moneyarrow_forward
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