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3 - 3 The kinds of money a Personal possession of currency...

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Unformatted text preview: 3. The kinds of money a Personal possession of currency ls prohibited In U.5. prisons. but In practice, prisoners stlll exchange goods and services. American prisoners used cigarettes as a medium oiexchange until smoking was banned in U.S. prisons in 2003. Alter 2003, prisoners looked to other items on the commissary menu to facilitate exchange. In ZIJOB, the Wall Street Journal reported dist pouches of mackerel fillets had beoome the preferred money in some of America's prisons. Outside of U5. prisons, of course, people use the US. dollar for day-to-day transactions. One Important difference between these two kinds of money Is that mackerels if have Intrinsic value. Mackerels are an example of commodity J Money. Explanation: un- A Money taking the form of a commodity with Intrinsic value is known as commodity money. An Item has Inb‘lnslc value If it has value outside of its use as money. Maekerels are used as a medium of exchange by American prisoners, but ihey also have value ouislde of their use as money. Money whose value derives from government decree is known as fiat money. U.S. dollars have value because the United States uovemmerlt stands behind them. Each U.S. dollar reads: "Tl'lls note is legal tender for all debs, puhllc and prlvate."Tl'le US. government declares that US. dollars are valid and does a reasonably good Job of managing their circulation, but ultimately, dollars have value bemuse people are willing to aooept them in archange for goods and services, In the oonfldenoe that they can then use them on buy other goods and services. ...
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