Question

cigarettes were used as currency by prisoners of war in allied prison camps during world war ii. almost everyone smoked and the red cross included cigarettes in packages to prisoners. which attributes of money did cigarettes have? (choose all that apply)

Answer 1

Cigarettes had several attributes of money, including:

• Medium of exchange: Cigarettes were used as a medium of exchange between prisoners. They were accepted as payment for goods and services, and prisoners could use them to buy things they needed.

• Unit of account: Cigarettes had a standard value that was recognized by the prisoners. This allowed them to keep track of their wealth and make transactions based on a common currency.

• Store of value: Cigarettes could be saved and stored for later use. They had a long shelf life and could be easily transported, making them a useful store of value for prisoners.

• Divisibility: Cigarettes could be divided into smaller units (e.g. half or quarter cigarettes) to facilitate smaller transactions.

However, cigarettes did not have the attribute of durability, as they could be easily damaged or destroyed, and they were not a legal tender or backed by a government, so their value was not guaranteed outside the prison camp context.