Federal Reserve Notes are legal tender because they are readily accepted in exchange for goods and services. But it is not pieces of paper that determine national wealth. It's the work ethic of their population. The money supply is a variable that the government must try to control to avoid various economic problems in the economy. Many different objects have functioned as a form of money throughout history. The common factor is that each item had to be accepted in exchange for goods and services. In the beginning, Wampum beads were used. The state of Virginia has used tobacco as a form of money for many years. They also issued tobacco-based certificates of deposit. Cigarettes functioned as a form of money during the World Cup. It did not and does not matter what form the economy used as currency, as long as everyone involved agreed on what the form of currency was. This is very important since we – the economy and the government – ​​decide what the value of our currency is and, as a result, are able to influence other markets. Friedman explained five truths about the influence of currency and inflation: (1) inflation is caused by a more rapid increase in the money supply; (2) our current world government determines the amount of money; (3) the cure for inflation is to lower the rate of monetary growth; (4) it takes time for inflation to develop; and (5) many unpleasant