History of Money1 Flashcards Preview

Blockchain > History of Money1 > Flashcards

Flashcards in History of Money1 Deck (15):
1

What is a medium of exchange

The ease/efficiency which a currency can be exchanged for products and services

2

What makes a good medium of exchange

Durability, Transportability,Divisibility, Fungibility & non counterfeit-ability

3

What is a unit of account?

A standard measurement of the value of goods, services, economic activities, assets and liabilities. (Stability)Imagine using Us and Jamaican dollars in Jamaica. Having mroe than one makes things complicated.

4

What is a store of value

Wealth can be saved and used for future use. Other examples - diamonds for example. Can't be bananas because it would rot

5

What are the main functions of currency?

Medium of exchange, store of value, Store of value

6

What is Fungibility?

Interchangeable? I can exchange 10 Euros for a meal or for 11.38 US Dollars.

7

What is bartering?

trading goods or services directly, without any intermediary ‘medium of exchange

8

What were some forms of primitive money

Cowry Shells,Wampum belts,Cattle, Tobacco,Whales Teeth or Grain

9

What were the main advantages of modern coinage relative to primitive money?

More fungible ( interchangeable), durable,portable

10

Properties of Bitcoin as a currency

Private, Decentralized,Digital, Cryptocurrency

11

Currency has passed through the following phases, though long overlapping cycles exist

Barter, Primitive Money, Commodity Money, Fiat Money

12

Bitcoin and several other cryptocurrencies represent a new form of currency tha

Private, Decentralized, with a fixed algorithmic money supply Possibly commodity-backed

13

Bitcoin and several other cryptocurrencies represent a new form of currency

Private, Decentralized, with a fixed algorithmic money supply Possibly commodity-backed

14

Which of the following is an absolutely necessary characteristic of a fiat currency?

Fiat currency is not redeemable for a commodity

15

What is the double coincidence of wants

when two people have goods they are both happy to swap in exchange