# 601.2 Lesson - monetaryPremium

**Screen:** monetaryPremium

**Headline:** Monetary Premium

**Reward:** 2

**Text:** If the value of money is not based on its scarcity, it may not be as reliable as a way to store wealth. In this case, other things that are scarce, such as assets or resources, may become more valuable and be used as a substitute for money.

This additional value is known as a monetary premium. When the usual form of money is not working well, people may turn to other things that are rare or hard to obtain as a way to exchange value.

Some historical forms of money had no other use or value besides being used as a way to trade for other things. The difference between the value of something as money and its value for its other uses is the monetary premium.

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## QUIZ

**Question:** What is a monetary premium?

**Answer:** The difference in value between something's use as money and its value for its other uses

**Feedback:** Congratulations! You know your stuff when it comes to monetary premiums. A monetary premium is the additional value that something can have when it is used as a substitute for money. Good job

**Correct:** true

**Answer:** An extra fee added to the price of goods and services

**Feedback:** Sorry, wrong answer! A monetary premium has nothing to do with paying extra for things

**Correct:** false

**Answer:** A monetary premium has nothing to do with paying extra for things

**Feedback:** Nope! A monetary premium is not a discount, it's actually the opposite.

**Correct:** false

<figure><img src="/files/6SObXEdyTHsdT8eA7s2h" alt=""><figcaption></figcaption></figure>


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