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Question:
1) What type of money would you say the Rai stones are? Are they commodity money? Are they fiat currency? Why or why not?
2) According to the definition of money and its functions, what strengths and weaknesses are there with the system of using the Rai stones as money?
3) Imagine that a giant tsunami came in and swept some of the Rai stones away into the ocean. What would be the immediate on the "market for Rai" ( the market on Yap)? What would happen to prices on Yap? Why?
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