Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 21, Problem 1PA
Subpart (a):
To determine
The commodities that are considered as money and those that are not money.
Subpart (b):
To determine
The commodities that are considered as money and those that are not money.
Subpart (c):
To determine
The commodities that are considered as money and those that are not money.
Subpart (d):
To determine
The commodities that are considered as money and those that are not money.
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Students have asked these similar questions
The monetary system in any economy facilitates trade and allows people to trade more efficiently, as compared to a barter economy. In the united states the monetary authority is the federal reserve system what are the requirements for something to be considered money? Why does the dollar have value?
Could each of the following items potentially serve as money? Consider each as a medium of exchange, a unit of account, or a store of value.
A. Visa credit card
B. Federal Reserve note
C. Debit card
D. Picasso painting
i. What are the necessary conditions for something to be considered money? Does Bitcoin satisfy these conditions?
ii. What are the advantages and disadvantages of El Salvador adopting Bitcoin as legal tender?
iii. What share of Salvadorans have access to the internet? How might that affect the use of Bitcoin as a currency?
iv. The U.S. already has several ways to make digital transactions, for example, credit/debit cards, Venmo, Zelle, PayPal, and so on. How would a digital currency increase efficiency?
v. Many early cryptocurrency investors have adopted a strategy known as HODL—Hold On for Dear Life. They believe that over time the value of cryptocurrencies, such as Bitcoin, will only continue to rise. If this is a dominant strategy among most investors, how does this affect cryptocurrencies’ ability to function as a currency?
Chapter 21 Solutions
Essentials of Economics (MindTap Course List)
Ch. 21.1 - Prob. 1QQCh. 21.2 - Prob. 2QQCh. 21.3 - Prob. 3QQCh. 21.4 - Prob. 4QQCh. 21 - Prob. 1CQQCh. 21 - Prob. 2CQQCh. 21 - Prob. 3CQQCh. 21 - Prob. 4CQQCh. 21 - Prob. 5CQQCh. 21 - Prob. 6CQQ
Ch. 21 - Prob. 1QRCh. 21 - Prob. 2QRCh. 21 - Prob. 3QRCh. 21 - Prob. 4QRCh. 21 - Prob. 5QRCh. 21 - Prob. 6QRCh. 21 - Prob. 7QRCh. 21 - Prob. 8QRCh. 21 - Prob. 9QRCh. 21 - Prob. 10QRCh. 21 - Prob. 1PACh. 21 - Prob. 2PACh. 21 - Prob. 3PACh. 21 - Prob. 4PACh. 21 - Prob. 5PACh. 21 - Prob. 6PACh. 21 - Prob. 7PACh. 21 - Prob. 8PACh. 21 - Prob. 9PACh. 21 - Prob. 10PACh. 21 - Prob. 11PACh. 21 - Prob. 12PA
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- Which of the following aren’t counted in the money supply of the US? a.Coins b.Travelers checks c.Commodities d.Debit accounts e. Currencyarrow_forwardWhich of the following are considered money in the U.S. economy? Which are not? Explain your answers by discussing each of the three functions of money. a U.S. penny a Mexican peso a Picasso painting a plastic credit cardarrow_forwardGive typing answer with explanation and conclusion Could each of the following items potentially serve as money? Consider each as a medium of exchange, a unit of account, or a store of value. a. Visa credit card, b. Federal Reserve note, c. Debit card, d. Picasso paintingarrow_forward
- In the United States today, what “backs” our money (gives it value)? A. Gold in the Department of the Treasury B. Silver bars in the Department of the Treasury C. The Federal Government D. Nothing-only our confidence that we can exchange it for other goods and servicesarrow_forwardexplain on how people uses the digital money nowadays.arrow_forwardexplain about the money creation and digital moneyarrow_forward
- What is money? What are the functions of money? What items may serve as money? Do you know of any other examples of money that is not currency or coins, in the US or other countries? Does money have to come from a government?arrow_forwardWhat is commodity money? What is fiat money?Which kind do we use?arrow_forwardwhat is the similarities and differences between money and currencyarrow_forward
- Which of the following is money? A. A check is money because while it is in circulation the quantity of money increases by the amount of the check. B. Deposits are money, checks are not money, and credit cards are not money. C. A credit card is money because it allows you to take a loan at the instant you buy something. D. Currency is money and credit cards are money because they are means of payment, but deposits are not money.arrow_forwardWhat is Fiat Money?arrow_forward#27. Identify two examples of commodity money. #28. The U.S. dollar is an example of fiat money. What is fiat money? #29. Why can fiat money be successfully used as a currency despite the fact that it has not intrinsic value backing it up?arrow_forward
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