Question

1. An individual is holding an ancient coin and claims that he got money. Discuss whether his claim is true or false? State your justification.
2. What do you mean by money has “intrinsic value”?
3. An individual has Centurion® Card from American Express (credit cards). The credit card is most valuable credit card in the world. Can this individual claim that he/she is a wealthy individual?

Answer 1

An individual is holding an ancient coin and claims that he got money. Discuss whether his claim is true or false? State your justification

• His claim is false. This is because the ancient coin that he holds is no longer a legal tender of currency, although the coin might have an intrinsic value.  

What do you mean by money has “intrinsic value”?

• The value of the object or material that is used as money or currency, is it's intrinsic value. e.g. When gold was used as a currency, gold itself had some value i.e. it's intrinsic value.

An individual has Centurion® Card from American Express (credit cards). The credit card is most valuable credit card in the world. Can this individual claim that he/she is a wealthy individual?

• Yes, the individual can claim that he/she is wealthy. If the card is the most valuable credit card in the world, then the bank would only let the individual use its services if he or she has a very good credit score , i.e. the ability to pay back the bank for credit being lent.