History and Evolution of Money Flashcard

Front

What is the average life span of a coin?

Back

30 years

Front

Which metals were the first metal coins made from?

Back

Iron, lead, copper

Front

Who used the wampum beads?

Back

North American Indians

Front

Which objects were used as early forms of money?

Back

Cowrie shells, wampum beads, livestock, metals

Front

What does 'counterfeit' mean?

Back

Fake money

Front

What is money?

Back

A medium of exchange that is widely accepted in transactions.

Front

What are the characteristics of good money?

Back

Durability, portability, divisibility, uniformity, limited supply, and acceptability.

Front

What is barter?

Back

A system of exchange where goods and services are traded directly for other goods and services without using money.

Front

What is fiat money?

Back

Currency that has no intrinsic value and is not backed by physical commodities, but is established as money by government regulation.

Front

What is the role of banks in the money supply?

Back

Banks facilitate the creation of money through lending and managing deposits.