Exit this survey Invention of Money Quiz Question Title * 1. Please provide your name and Student ID Number. Question Title * 2. While studying the materials for "The Invention of Money," my concepts of money, currency, and the economy: Didn't change at all Changed a little bit Changed dramatically Elaborate, please (not optional). Question Title * 3. When the Germans painted black crosses on the fei of the Yap, the Yap: Responded foolishly Responded rationally Responded irrationally but understandably Responded as we would if our money were placed in escrow Should have wiped the fei clean Could have ignored the marks Must have suffered an existential crisis Needed to man up and kick the Germans off the island Elaborate, please (not optional). Question Title * 4. When the US Treasury moved gold bars into cabinets marked "French": Something of value changed hands Nothing at all occurred in the rational world The French suddenly had more security The French economy was strengthened to the same degree the US economy was weakened Other world economies were weakened because they held dollars instead of gold The Yap would have understood that transaction without question Elaborate, please (not optional). Question Title * 5. On the island of Yap, inflation: Cannot occur Can occur Cannot occur because so little new money enters the system at any time Cannot occur because money changes hands too slowly Can occur because goods in short supply can be priced higher Can occur because inflation is about faith, not supply and demand Elaborate, please (not optional). Question Title * 6. The US monetary system: Is more rational than the Yap system Is just about as rational as the Yap system Is less rational than the Yap system Has more levels of abstraction than the Yap system Is easier to understand than the Yap system Seems more reasonable because we're more familiar with it Is clearly superior to the Yap system since they have adopted the dollar as their currency Makes more sense than the Yap system would in a country of 300 million people Elaborate, please (not optional). Question Title * 7. Inflation began in Brazil more than 50 years ago when the government printed vast numbers of cruzeros to build the new capital city, Brasilia. This makes sense; I understand it. The broadcast says it's true, but I don't understand it. If that's true, why didn't they just take the money back out of the economy? I don't see the connection between inflation and the number of bills in circulation. Inflation doesn't seem like much of a problem. Obviously, inflation is better than deflation, when values keep going down. An economy with completely stable prices is the best possible situation. Elaborate, please (not optional). Question Title * 8. How do you suppose the Yap began to use dollars instead fei as currency? To trade internationally, the Yap had to pay for things with something other than massive stones. The evolution happened naturally over time as dollars became acceptable. During the transition from fei to dollars, there was a fluctuating exchange rate between currencies. Americans arrived and refused to accept fei; insisted on paying in dollars. The Yap government started paying all its workers and suppliers in dollars. Elaborate, please (not optional). Question Title * 9. The broadcast about Brazil explained how the transition from cruzeros to Brazilian reals occurred. As I understand it: The government stopped printing cruzeros and started printing reals. Transactions occurred in cruzeros but prices were set in reals, with a fluctuating conversion rate. Both currencies were allowed to compete for the public's acceptance. The government began to pay its workers and suppliers in reals. Shoppers still carried wads of cruzeros but the prices were marked in reals. Inflation came down but for the life of me I don't understand why. Clarify if you like Question Title * 10. Studying the source materials gave me new insight into money and our daily economic transactions. The observation I'm most proud to have come up with during this thought process is: Done