The Use of Fei as Money on the Island of Yap

question 58

Multiple Choice

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.

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Definitions:

Absorbed Firm

A company that has been merged into or acquired by another company, ceasing to exist as an independent entity.

Proxy Contest

A struggle for control of a company, wherein competing parties seek to secure the votes of shareholders through proxy solicitation.

Shareholder Votes

The mechanism by which shareholders express their opinions or make decisions on corporate matters, typically exercised at annual meetings.

Equity Ownership

Refers to the portion of a company's capital that is owned by its shareholders, representing a claim on the company's assets and earnings.