What is the purpose of money? What are its characteristics? To easily exchange goods or services. Money (the dollar bill) itself is of no value. It is the utility of the gold or silver it represents that is of value.
Is there a difference between money and currency? Yes. Money = gold or silver. You can touch the hard metal object. Currency is man’s invention to represent the money. The dollar bill represents a debt. The dollar bill you hold is a debt instrument from the United States government to you. Look at the top of any currency denomination. It says it is a NOTE. A note is a promise to pay. The promise is backed by USA’s gold or silver.
Could we solve financial problems by printing more paper money ourselves? Why or why not? If you mean a state or individuals printing their own money absolutely not. Might as well go back to barter system.
Could the government print more paper money to solve financial problems? Why or why not? Only in the short term. Must be closely monitored else can contribute to inflation.
What percentage of time would you estimate you use paper money for purchases? What else do you use? 10 percent. Credit card usage is cheaper due to rebates and cleaner.
What is your preferred method to pay for purchases? Why do you prefer that method? Credit card leaves an audit trail and can challenge the purchase. Credit card companies are often our friend when a dispute arises with a purchase. Plus, I get 2 percent back on purchases with credit card.
Would you support changes in society that would make paper money unnecessary? Why or why not? Yes. It’s a digital world that makes things cheaper. The cost to print currency is significant.
Do you think we still need to have paper money? Why or why not? Yes at least in my lifetime. It feels good to have cash in pocket. Plus some goods and services are no one else’s business. And occasionally the credit card machine does not operate properly.