1. Define legal-tender as applied to money. What is meant by fiat money?
2. Show the difference between convertible and inconvertible money.
3. The government of the island of Guernsey having no money, issued
paper-notes to pay for the building of a market. They circulated and
were gradually taken up as the market earned its cost, during ten years.
When they were all redeemed and burned, the island had the market free
of cost. Explain how this could be done. (This is from Sumner's
_Problems in Political Economy_.)