ECON 272

Out of Class Practice Questions on Money

1.  Since nobody invented money - how and WHY did it come about?

2.  Given your answer above, how would you respond to someone who says that, "money is the root of all evil"?

3.  What is the difference between commodity money and fiat money?

4.  Assuming that a government is in "charge" of the money supply, why would having a fully backed fiat money (such as a gold standard) put a limit on how much fiat money the government can create?