How Does a Currency Get Its Value?
Today most money is fiat money, not convertible into gold or any other asset; in Britain the link to gold ended in 1931.
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1.What does the video say gives modern money its value?
Today most money is fiat money, not convertible into gold or any other asset; in Britain the link to gold ended in 1931.
2.What are the four weights on the scale?
Money is accepted for taxes and debts and courts enforce contracts in it; everyone expects everyone else to accept it.
3.The country has 1,000 units of money, each spent 5 times a year, on 1,000 goods. What is the price?
That makes 5,000 in spending, spread over 1,000 goods.
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