Explain the differences between commodity money, representative commodity money, and partially backed representative commodity money
What will be an ideal response?
Commodity money is money that has intrinsic value, so examples are physical items such as gold, agricultural products, and beads.
Representative commodity money is paper currency that can be redeemed for a specific quantity of an underlying commodity such as gold.
Partially backed representative commodity money is paper currency that is backed by only a fraction of the total amount of a commodity in a society.
You might also like to view...
In the above figure, an increase in the expected profit will result in a movement from point E to
A) point F. B) point G. C) point H. D) point I.
Trying to project total federal revenues and outlays over the next 50 years represents educated guesses at best
a. True b. False
Advocates of the crowding-out effect maintain that the large budget deficits during the recession of 2008-2009
a. stimulated output and employment, leading to a quicker recovery. b. will lead to a slower recovery than would have been the case if government borrowing had been more restrained. c. led to lower interest rates, stimulating private investment and consumption. d. will lead to lower future taxes and more private spending as the economy recovers.
If a currency has a fixed exchange rate, it is not subject to the forces of supply and demand
Indicate whether the statement is true or false