Recall the Application about the Brazilian city of Silva Jardim that has issued its own local currency to answer the following question(s). In order to entice local residents to spend their money on stores in town, the small city of Silva Jardim in Brazil, hatched a plan for its own currency. The currency is called the capivari and features a picture of a local rodent on the bills. The capivaris are issued by a local bank, which holds one unit of official Brazilian currency for each capivari it issued. Local merchants, however, give discounts for paying in capivaris so that local residents are therefore encouraged to make local purchases.
-According to this Application, the small city of Silva Jardim in Brazil has issued its own currency called the capivari. When people use this currency to execute transactions, this currency is being used as a

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The capivari is being used as a medium of exchange when people use it to execute transactions. It has been created by the local authorities to encourage local spending and local merchants give discounts for paying in capivaris. It is a form of currency that enables people to trade goods and services with one another, which is the function of a medium of exchange. It is not being used as a unit of account or a store of value as there is no indication that people are using it to measure the value of goods or as a means of saving their wealth. Commodity money is a form of money that has intrinsic value, such as gold or silver, which is not the case with the capivari.

Recall the Application About the Brazilian City of Silva Jardim