TPO 02 - Question 6

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TPO 02 - Question 6

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Using points and examples from the talk, explain the two definitions of money presented by the professor.

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A sample Answer to this speaking in text:

In this lecture, the professor talks about the two definitions of money. The first is broad definition which is anything that people can use to make purchases with. For example, a taxi drive earns five dollars for a taxi ride, he can then use the five dollars to buy some vegetable. While in a barter system, the driver can except vegetable for payment too. The second is narrower definition of money, which is the only legal tender to be accepted in a society. Take the same taxi driver for example, in the United States, only coins and bills are legal tender, so he must except paper bills or coins but vegetable as payment.

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