A World of Money Viewing Guide Key

A World of Money Viewing Guide Key

  1. In ancient times, Roman soldiers were paid in salt.
  2. The simplest form of trade is barter.
  3. For many cultures, a good medium of exchange was farm animals.
  4. Give and take in the marketplace always determines the price.
  5. Back in 560 BC, merchants and traders in Lydia carried chunks of metal called electrum.
  6. Traders agreed on small standard amounts of metal to use in buying things.
  7. All of a sudden, coins became the medium of exchange.
  8. The Lydians’ great invention, money, became something that could build an empire.
  9. Greek became the language of commerce.
  10. For 400 years, Greek culture and civilization flourished.
  11. The Roman Empire spread commerce through most of southern and western Europe.
  12. The Roman Empire lasted for almost 1000 years.
  13. Roman emperors created a system in which wealth was taxed and redistributed.
  14. The Roman emperors were inflating their money.
  15. With the death of Rome, the world plunged into the Dark Ages.
  16. Paper Money was invented, controlled and printed by the Chinese government.
  17. Governments have declared that the money they print is legal tender.
  18. Lawrence Reed is president of the Foundation for Economic Education.
  19. Prices help buyers and sellers recognize the scarcity of goods and services.
  20. Saying prices have been rising is another way of saying the value of money has gone down.
  21. It’s tough to print gold, but you can print a lot of paper.
  22. Governments in effect are taxing their citizens, who will have to pay those higher prices.
  23. How were coins an improvement over electrum and other commodities?
  24. When governments declare the money they print is “legal tender,” what does that mean?
  25. What function do prices serve? Why have prices been rising for years?
  26. How does inflation affect the value of money? How is inflation like a tax?
  27. What makes a rare baseball card valuable? What if—all of a sudden—someone found 100,000 of what had been a rare baseball card? How do you think the increase in supply would affect the price (value) of the card? Why? How is this similar to the way an increase in the money supply affects the value of money?
A World of Money Viewing Guide - KEY