Question

famous American has been visiting the same tropical island for 15 years for vacations. When she goes she pays for everything by writing checks drawn on her U.S. bank. The currency the natives use are not U.S. dollars; they use a currency called a fungo. The natives never cash 2her checks. She is so well known on the island that the natives simply trade her checks among themselves. Who is paying for her vacation

Answer 1

Answer:

No one

Explanation:

There are two modes of exchange in the island. One is fungo and the other is the famous American's checks drawn on a US bank. No one is paying for her vacation. She is simply the money supplier for the island.

She is not spending a single penny. Since the checks will never be cashed, she might just keep writing checks for her expenses on the island, while having no cash in her bank account.