The use of fei as money on the island of Yap illustrates the idea of money as a social convention because:
A) only fei physically in the possession of the owner is accepted in transactions.
B) legal claim to a fei never seen by current generations was accepted in transactions.
C) the central bank of Yap accepts fei in exchange for paper certificates.
D) the government of Yap verifies the authenticity of fei used for transactions.

Question

Quizplus · Accepted Answer

The use of fei as money on the island of Yap illustrates the idea of money as a social convention because legal claim to a fei never seen by current generations was accepted in transactions. This demonstrates that the value of fei was based on the collective belief and trust of the community.

The Use of Fei as Money on the Island of Yap