Quiz: From Salt to Gold 4 questions · 80% to pass 1. What fundamental problem does money solve?InflationThe double coincidence of wantsBank runsGovernment debtMoney solves the double coincidence of wants: the problem that two people in a barter trade must each want exactly what the other has, at the same time. Money acts as a universally accepted intermediary.2. Which property of money means one unit is interchangeable with any other unit of the same type?PortableDurableFungibleDivisibleFungibility means one unit is interchangeable with another of the same type and purity. An ounce of gold in one country is worth the same as an ounce of gold in another.3. Why did gold become the dominant form of money across civilizations?Governments mandated its useIt satisfied all five properties of good moneyIt was the most abundant metalBanks required gold depositsGold became dominant because it satisfied all five properties: divisible, portable, durable, fungible, and scarce. Every alternative failed at least one test.4. The Latin word 'salarium,' the root of 'salary,' refers to payments made in what?GoldSilverSaltGrainSalarium comes from the Latin word for salt. Roman soldiers received salt as part of their compensation, and the word evolved into our modern 'salary.' Check answers Retake quiz Back to lesson Next lesson →