What Is Money? Where Does Its Value Come From?
Money is whatever people widely accept to pay, to save, and to put a price on things.
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1.What is money, in the video's definition?
Money is whatever people widely accept to pay, to save, and to put a price on things.
2.Leo writes Marge an IOU for 20. Which of the three jobs can it do?
It can store value for Marge if she trusts Leo, but it cannot set prices and is not widely accepted as payment.
3.Which three things hold up the acceptance of money?
Trust that it keeps its value, scarcity so that it cannot be printed freely, and the knowledge that others will accept it.
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Sources (4)
- European Central Bank: What is money? (Tell me more)
- Bank of England: Money creation in the modern economy (Quarterly Bulletin 2014 Q1)
- Folge 004 EconomyTutor.com, saetze.en.v1.json (100 Gueter, 4.950 Tauschpreise)
- Eigene Berechnung (synthetisches Rechenbeispiel
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Education only. Not financial advice.