How Does Money Get Its Value?
Memory picture: a wallet for paying, a tag for pricing, a safe for keeping.
Video coming soon. The lesson video will appear here once it is published on YouTube.
Check yourself: sample questions
Think about each question, pick what you would answer if you like, then select “Show answer” to see the solution and why. Nothing is graded or sent to us. Example numbers are worked examples, not predictions.
1.Which are the three jobs of money, per the Bank of England?
Memory picture: a wallet for paying, a tag for pricing, a safe for keeping.
2.A 100-dollar bill costs about 11 cents to print and a one-dollar note about 4 cents. What does this show?
The value must come from somewhere else.
3.What is a double coincidence of wants?
Without a medium of exchange, that coincidence has to happen at the same moment.
Full course: 5 more questions for this lesson
The full course unlocks all self-check questions of all 365 lessons, the daily plan, your progress and the printable learning record. Lessons 1 to 7 are completely free.
See the full course Start the free week
Already bought? Open the course on this device
Sources (6)
- Federal Reserve Board: How much does it cost to produce currency and coin? (FAQ)
- Bank of England: What is money? (Erklaerseite)
- Federal Reserve Board: What is legal tender? (FAQ, 31 U.S.C. 5103)
- Hyperinflation in Zimbabwe (Wikipedia
- Radford, R. A.: The Economic Organisation of a P.O.W. Camp, Economica, New Series, Vol. 12, No. 48, November 1945, S. 189-201
- Eigene Szene: Leo druckt "Leo-Scheine", Marge am Marktstand (Denkbeispiel)
Education only. Not financial advice.