Knock out the money myths

Exercise and reference answers

Questions

1. Question

   Three of these claims about money are false.

   Choices

   1. Explanation

      Cheques can be refused; only legal tender cannot.

      Item

      Cheques can never be refused

   2. Explanation

      Fiat money has no intrinsic value of its own.

      Item

      Fiat money has high intrinsic value

   3. Item

      Legal tender cannot be refused

      Correct

      Yes

   4. Explanation

      Barter fails exactly for lack of double coincidence of wants.

      Item

      Barter needs no coincidence of wants

Instructions

Tap each claim you can prove false. The true one stays.

Explanation