Bitcoin is not a suitable form of money because its price is highly variable. Which one of the functions of money does this violate? A. Store of value B. Medium of exchange C. Unit of account
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Bitcoin is not a suitable form of money because its price is highly variable. Which one of the functions of money does this violate?
A. Store of value
B. Medium of exchange
C. Unit of account
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- Gold and silver have been historically used as materials for making commodity money (coins) by many different human cultures throughout history. This was because they were difficult to obtain and less prone to rust than other metals. In other words, they could perform one of the functions of money better than other metals. Which function is that? Which function of money do gold and silver perform better than other metals? a. Unit of account b. Store of value c. Medium of exchange d. Standard of deferred paymentIf raw whole eggs of uniform size were used as money, which of the following functions of money would be the hardest for this to satisfy? Select one: a. store of value b. unit of account c. medium of exchange d. certificate of goldWhich of the criteria for being used as money in a modern society does each of the following not meet? The criteria are (a) not rare, (b) indivisible into smaller units, (c) not durable, (d) doesn’t maintain its value over time, (e) not portable, (f) not expandable, (g) too easy to counterfeit. Items that could not be used for money. Example. Ice Cube. Why not? (c) not durable Bowling Ball. Why not? Rare gems. Why not? Whiskey. Why not? Sand. Why not? Cigarette. Why not?
- You can walk into any department store and compare prices on jeans. Which of the following functions of money allow for this? A) Unit of Account B) Store of Value C) Medium of Exchange D) Durability of Currency1. find and cite two recent articles in a magazine or newspaper or on a website about bitcoin and in your own words post two thoughts about what you learned and understood about bitcoin from those articles 2. Do you think bitcoin is money? If yes, why? If not, why not? Think about what makes anything money 3. respond to at least one of your colleagues' posts in a thoughtful, productive way 4. refer to the rubric posted below to understand how the posts are gradedDebit cards are considered as __________ money
- Which of the following is not one of the three functions of money? Medium of Exchange Credit for Consumption Store of Value O Unit of AccountMatch each scenario to the function of money that it refers to. A. Angel a buyer for GoCamping store, reviews a price list of various camping supplies before placing an order B. Tonya plans to use money accummulated in his bank account over several years to put a down payment on a house C. Ariel sold 150 cases of wine last week to a local bar 1. Unit of account 2. Medium of exchange 3. Store of valueOne limitation of using money as a store of value is that: a) money needs to be divisible and portable b) money loses value over time due to inflation c) money is not readily acceptable everywhere in return for goods and services d) money is not very liquid
- 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?That money can be used to repay loans relates to money's function as a A) Standard of deferred payment store of value B) Medium of exchange C) Mediator of ValueEveryone in Bananatown loves bananas! In fact, sometimes they are willing to take them as a form of payment for goods and services instead of dollars. Bill, a tourist, sees an opportunity to make some money due to 8 bananas being worth $2. He buys all of the bananas in Bananatown and goes home. He stores them in the trunk of his car for 6 months. Bill then goes back to Bananatown, knowing that the people there will be excited to purchase bananas from him. He opens his trunk and realizes that this plan was not well thought out, as all the bananas are rotten. How are bananas used as a form of money in Bananatown?