Vrednost papirnog novca (Fiat)

What was a significant limitation of the barter system?

• It required a fixed value for all goods.

• It was difficult to find someone who wanted what you had and had what you wanted.

• It only worked for small transactions.

• It led to rapid inflation.

Why did cowrie shells eventually become problematic as a form of money?

• They were too heavy to carry for large transactions.

• They were easily counterfeited.

• Their abundance in certain regions led to inflation.

• They were not durable enough for long-term use.

What was the primary reason for the shift from metal coins to early forms of paper money?

• Paper was cheaper to produce than metal.

• Metal coins were too heavy and inconvenient to carry for large amounts.

• Paper money was more resistant to counterfeiting.

• Governments wanted more control over the money supply.

What major global events contributed to many countries abandoning the Gold Standard?

• The Industrial Revolution and increased trade.

• Major economic depressions and world wars.

• The discovery of new gold reserves.

• The rise of digital currencies.

What significant event in 1971 led to the US dollar becoming fiat money?

• The end of the Vietnam War.

• The establishment of the World Bank.

• The Nixon Shock.

• The beginning of the Cold War.

What does the term "fiat" in "fiat money" mean?

• "Backed by gold"

• "Let it be done"

• "Universal currency"

• "Government-controlled"

What is an advantage of fiat money for a central bank during an economic crisis?

• It allows the central bank to increase gold reserves.

• It enables the central bank to print more money to lower interest rates and stimulate the economy.

• It ties the currency directly to a tangible asset.

• It reduces the need for international trade agreements.

What is a major disadvantage of fiat money?

• It is difficult to transport across borders.

• Its value depends entirely on trust in the issuing government.

• It is always prone to hyperinflation regardless of government stability.

• It cannot be used for international transactions.