macro assignment

macro assignment - Atinuke Omolara April 2, 2009...

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Atinuke Omolara April 2, 2009 Macroeconomics 1101 Dr. Donald Wargo The comic that I found the most compelling was the one about the island that developed its own currency. The booklet began describing the history of money in a story about a community of people living on an island who used their goods and services to exchange items for things they needed. The people were happy to be trading but the comic depicted the problems of using the barter system. The barter system is the exchange of resources or services for another and may date back to the beginning of humankind. In a barter economy, a person having something to trade must find another who wants it and has something acceptable to offer in exchange. Today some individuals, organizations and governments around the world still use and prefer bartering as a form of exchange of goods and services. Realizing this system was inconvenient for a growing community, the town’s artist created the first coins to be used in order to have something everything would accept and make trading easier. In the United States, we use fiat money, which is a standard form of currency that is accepted as a tender to pay debts. Fiat money is different from commodity money which is
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macro assignment - Atinuke Omolara April 2, 2009...

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