MONEY AND BANKING

400 Words  2 Pages

1. During the early Roman era, the merchants of Rome frequently traveled beyond the empire’s borders to trade with other peoples. Summarize the trading difficulties that probably arose in the barter economies they encountered.

• During raids as they were trading with other peoples, goods were often stolen and people were killed. The leaders of other empires would attack the merchants of Rome.

2. During World War II, U.S. prisoners of war used cigarettes as a form of money. Cigarettes were used to purchase anything that was for sale in the prison camps. We have discussed, however, that money should possess the qualities of durability, portability, divisibility, uniformity, ease of recognition, and scarcity. In terms of these six criteria, discuss the advantages and disadvantages of cigarette money in