the value of money

Question 1

for krypto to become money it must

Answer 1

-SOV
-MOE
-UOA
-standard of deferred payment

it is not MOE because it is not accepted as payment everywhere

Question 2

market value/price giving it up will yield you

Answer 2

profits

Question 3

what is an assets intrinsic value is given by

Answer 3

the present vaue of all benefits associated with its indefinite, future ownership

Question 4

IV is

Answer 4

owning

Question 5

nominal IV

Answer 5

owning house then renting it out

Question 6

real IV

Answer 6

living in house you own

Question 7

what is best way to utilize house as asset

Answer 7

living in it then renting out a room

Question 8

do stocks have real IV

Answer 8

very little real IV unless you own a lot

Question 9

what is real IV of stock

Answer 9

owning a lot of stock (over 50%) which gives you decision making power in company

Question 10

nominal IV of stock

Answer 10

money stock makes you dividends

Question 11

real IV of art

Answer 11

eye of beholder/joy you get looking at it

Question 12

nominal IV of art

Answer 12

if you own Mona lisa, someone is willing to pay to borrow it/see it

Question 13

main value of cash is

Answer 13

trading it not holding it

Question 14

real IV of cash

Answer 14

burning it

Question 15

nominal IV of cash

Answer 15

nothing because $ loses purchasing power, physical so does not acrue interest

Question 16

does cash have IV

Answer 16

no

Question 17

nominal MV

Answer 17

what youre selling someone buys

Question 18

real MV

Answer 18

money = way to buy goods + services

Question 19

par

Answer 19

exchange rate for 1:1 (ex in US economy despoits and cash)

Question 20

2 kinds of money that don’t exchange as par

Answer 20

dollar + bitcoin

Question 21

exchange rate

Answer 21

nominal market value of one currency expressed in terms of another dollar

Question 22

interest rate is

Answer 22

echnage rate between current dollars and future dollars

Question 23

why is it banks best interest to accept dollars as payment

Answer 23

because it has legal tender

Question 24

Do US businesses have to accept USD as payment

Answer 24

no (federally speaking no mandate)

Question 25

why do we care dollars have nominal market value

Answer 25

ultimately to echnage for goods and services wnat other dollars because they have makret value

Question 26

legal tender

Answer 26

less echange rate risk/less volatility like bitcoin

Question 27

whichof the four functions of money is legal tender related to

Answer 27

SDP - can pay your debts with it

leans to it bieng mean of exchange

Question 28

keynes three main motives

Answer 28

transaction, precautionary, speculative

Question 29

trasnaction motive

Answer 29

need money

Question 30

precuationary

Answer 30

hold near money like assets

Question 31

speculative motive

Answer 31

money = bad SOV long term
-don’t hold money like that

Question 32

why are people less willing to hold as much money

Answer 32

because interest rates = people will buy tsocks iwth it

Question 33

why does dollar bill have no IV

Answer 33

niether yields a future cash flow nor any sort real utility

Question 34

as long as it has market value it is

Answer 34

bubble

Question 35

whats the risk when MV exceeds IV

Answer 35

you know market vaue level is higher than IV but still want to buy becaise you dont know when bubble will pop, so hope MV will continue to go up. Risk is if bubble pops right away especially if you know IV is much lower

Question 36

what would you do if MV falls below IV

Answer 36

buy because price will go back up if you believe IV will revert backp

Question 37

paul krugman bubble

Answer 37

cash is not a bubble because it is not based on inconsisnte view of the future

Question 38

who has most accurate view of bubble

Answer 38

robert shiller

Question 39

robert shiller bubble

Answer 39

-bubble is typically positive
-spplies to game stop, bitcoin early on, does not apply to money

Question 40

formal def of bubble

Answer 40

MV>IV

Question 41

informal bubble def
-p kriggy
-dr doom

Answer 41

-inconsistnet views about future
-social epidemic featring successive feedback loops