Question

In a tiny village, on the coast of South America, early inhabitants used sea shells, as money. Some of these shells were very beautiful and fragile. Everyone agreed that the shells were valuable and the people utilized them in much the same way we use money today. The fragility of the shells and the fact that a shell is difficult to split into smaller denominations would make these sea shells unfit to act as money today because sea shells could not act as a ________.

Answer 1

Answer:

store of value

Explanation:

Based on this information it can be said that seashells would be unfit to act as money because they could not act as a store of value. Money needs to be easily divisible and storable in order for it to be used as a medium of exchange. This also allows money to easily measure the value of a certain good or service. Therefore, since seashells cannot be stored since they are very fragile and cannot be divided then they would not be fit as money.