Question

Money that was being used, namely cigarettes. Describe how cigarettes addressed each of the 3 functions of money. What function were cigarettes best and worst at satisfying? Has there ever been a situation where you have used a nonconventional form of money? Use the Radford article to support your position.

Answer 1

solution:

he medium of exchange deals with the bartering of a good or service without the use of money.

Since money was not available to the men in Stalag 17 cigarettes became the medium of exchange.

The medium of exchange would be the best at satisfying the replacement of money.

In the storage of wealth example cigarettes will hold its worth as long the value is predictable.

Since the value of the cigarette is in the consuming it is not in my opinion a good storage of wealth.

The unit of account allows for a price or value be placed on a good or service.

A cigarettes value changes as they become more available and then less available