Banking 18 - Big Picture

Question 1

money vs wealth?

Answer 1

wealth = land, food, shelter, transportation, entertainment

money = medium of exchange

Question 2

difference between gold and paper currency?

Answer 2

paper money isn’t scarce - it is controllable, flexible and can be manipulated (e.g., quantitative easing, printing more money)

gold is scarce and finite - less easily controllable