Answer to Question 2:

If everyone were perfectly honest, society wouldn't need money. The stock of money is thus a measure of human greed!

True or False?


The statement is false. The only way a society could get by without money is by using some system of voluntary clearing of credits on a weekly or monthly basis. Even if everyone could trust everyone else, the mere counting and offsetting of debts on a person-by-person basis across the entire economy would use resources. A typical person will transact with hundreds of other individuals and businesses in a given month. Using money, records of only the most important of these transactions need be kept. Without money, every exchange, however minor, would have to be kept track of by at least one of the parties to it. Would you use your credit card to purchase a bottle of coca cola at the corner store? Because you don't, does that make you immortal or greedy?

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