mpts: Keep the Highest: 13 The kinds of money Aa Aa ersonal possession of curren
ID: 1167185 • Letter: M
Question
mpts: Keep the Highest: 13 The kinds of money Aa Aa ersonal possession of currency is prohibited in U.S. prisons, although, in practice, prisoners still exchange goods and ervices. American prisoners used cigarettes as a medium of exchange until smoking was banned in U.S. prisons in 2003. After 2003, prisoners looked to other items on the commissary menu to facilitate exchange. In 2008, the Wall Street Journal reported that pouches of mackerel fillets had become the preferred money in some U.S. prisons. Outside of U.S. prisons, people use the U.S. dollar for day-to-day transactions. One important difference between using pouches of mackerel fillets and using dollars as money is that value. have intrinsic Pouches of mackerel fillets are an example of money Suppose that an innovative and respected prisoner comes up with the idea that, instead of using pouches of mackerel fillets directly as money, he will accept deposits of pouches of mackerel fillets and issue depositors unique, but intrinsically worthless, tokens that they can exchange at any time allowed by the guards for a fixed quantity of pouches of mackerel fillets. By performing this service for a small fee, the innovative prisoner keeps the deposits secure from theft, and the depositors benefit because they can more easily transact with and securely hide thelr tokens than they would with their pouches of mackerel fillets The innovatlive prisoner has created a currency system for prisoners to use the tokens as CHA 316 2004-2016 pa Al nighes reservedExplanation / Answer
a) Mackrell fillets have an intrinsic value but the dollar bills is a fiat money meaning no intrinsic value.
b) It is an example of "Commodity money".
c) The token will be used as Representative money or Fiduciary money.
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