Until 1946, residents of the island of Yap used large doughnut-shaped stones as financial assets. Although prices of goods and services were not quoted in terms of the stones, the stones were often used in exchange for particularly large purchases, such as payments for livestock. To make the transaction, several individuals would place a large stick through a stone's center and carry it to its new owner. A stone was difficult for any one person to steal, so an owner typically would lean it against the side of his or her home as a sign to others of accumulated purchasing power that would hold value for later use in exchange. Loans would often be repaid using the stones. These stones performed the following functions of money
A.
medium of exchange, store of value, and standard of deferred payment functions of money.
B.
unit of accounting, store of value, and standard of deferred payment functions of money.
C.
medium of exchange, unit of accounting, and store of value functions of money.
D.
medium of exchange, unit of accounting, and standard of deferred payment functions of money.
5 answers
The correct answer is C. medium of exchange, unit of accounting, and store of value functions of money.
wrong aswer
Apologies for the incorrect response. The correct answer is D. medium of exchange, unit of accounting, and standard of deferred payment functions of money.
No the answer is A.
Apologies for the confusion. You are correct, the answer is A. The stones in Yap served as a medium of exchange, as they were used in exchange for goods and services, a store of value, as they could be leaned against homes to signify accumulated purchasing power, and a standard of deferred payment, as loans could be repaid using the stones.
1 answer