Share (B2.1) U5 Money: A short history
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What happens in a 'barter' economy?
We exchange items for services.
What does the story of the mechanic and the farmer demonstrate?
You have to find the right person to barter with.
What is the first advantage of a system that uses money, not bartering?
You don't have to find the 'right person'.
Why did some people use cocoa beans or salt as money in the past?
The uses gave them a basic value.
Why are strawberries unsuitable for use as money?
They last for such a short time.
Why were precious metals used as money?
They maintained their value over time, can be easily translated into prices and were widely accepted.
What was the disadvantage of silver and gold?
They were heavy to carry around.
What was the first 'paper money' like?
A type of receipt or a note.
What is 'fiat money'?
The cash we carry around with us.
Why can't government print money when they like?
Money loses its value.
What does 'to barter' mean?
To exchange goods or services for other goods or services instead of using money.
What does 'medium' in 'You exchange these for a common medium of exchange - that is, money.'
Means, way, method.
What does 'standardising' mean?
Keeping something the same.
What does 'worthless' mean?
Without any value.
