Which of the following statements is true?
A) In Romania under Communist Party rule in the 1980s, Kent cigarettes served as a medium of exchange. This illustrates the use of Kent cigarettes as fiat money.
B) Commodity money has no value apart from its use as money.
C) In Romania under Communist Party rule in the 1980s, Kent cigarettes served as a medium of exchange. This illustrates the use of Kent cigarettes as commodity money.
D) Fiat money must be backed by gold; otherwise it is worthless.

Question

Quizplus · Accepted Answer

Kent cigarettes in Romania during the 1980s served as commodity money because they had intrinsic value and were used as a medium of exchange.

Which of the Following Statements Is True