Question

Why might an individual find a $20 Federal Reserve Note to be more desirable as a form of money than a $20 gold coin? Which would the government find more desirable to produce? Briefly explain.

Answer 1

Answer:

It will prefer the first as It fullfil all the money requirement as it is:

socially acceptable.

method of saving

used to set prices to other goods.

The government will prefer to do the federeal reserve note as their cost is lower (just hte papper and ink) while the gold required extraction, purification adn melting into coins.

one of the goal of a financial system is to decrease the cost of operation and moving to papper from scarce metal reduced the cost and effort to be able to purchase.

Explanation: