ECON 272

In Class Exercise Six - Money

1.  Who invented money?

2.  What is money?  What are the three functions of money?

3.  What does double coincidence of wants mean and why does it cause a problem for bartering?

4.  What is commodity money (what makes it money)? (Make sure you can explain the process of its SPONTANEOUS emergence).  Assume there is no money (dollars, cents) in this classroom.  What do you think might emerge as commodity money in this class (society)? Why?

5.  What is fiat money (what makes it money)?

   a.  backed?

   b.  partially backed?

   c.  non-backed?

6.  What questions do you still have about this material?