Chapter Four7 The government may get involved in the monetary system to help people reduce transaction costs. Using gold as a currency is costly becau
{"Image DocumentName": "The government may get involved in the monetary system to help people reduce transaction costs. Using gold as a currency is costly because the purity and weight has to be verified. Also,", "Image ImageDescription": "coins are more widely recognized than gold bullion. The government then accepts gold from the public in exchange for gold-certificates\u2014 pieces of paper that can be redeemed for actual gold. If people trust that the government will give them the gold upon request, then the currency will be just as valuable as the gold itself\u2014plus, it is easier to carry around the paper than the gold. The end result is that because no one redeems the gold anymore and everyone accepts the paper, they will have value and serve as money.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}