Imagine you have two kinds of candy. One is always the most popular in class because it tastes good and everyone has it, that's like a strong currency. The other kind no one wants because it’s old and doesn't taste as good, that's like an unpopular currency. Currencies become popular when people trust them, use them often, and find them useful.
Examples
- If your friend’s snacks always taste bad, no one wants to take them from you.
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See also
- Why Do We Have Different Kinds of Taxes?
- Why Do Prices Change So Much?
- Why Do We Use Money Instead of Bartering?
- Why Do Prices Go Up So Much When There's a Shortage?
- Why Do We Have Different Kinds of Coins?
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Categories: Economics · currency,economics,trust