Related to the Economics in Practice on p. 189: In Santa Cruz, the red feathers of the Scarlet Honeyeater bird were used as currency. In this instance, the feathers would be considered

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Commodity money is a type of currency in which the value of the currency is derived from the value of the commodity used to make it. In this case, the value of the red feathers of the Scarlet Honeyeater bird was used as currency, therefore making it commodity money. Fiat money is money that has value because a government declares it to be legal tender, while token money is money that has no intrinsic value but is readily exchangeable for goods or services. Legal tender refers to the fact that money is legally recognized as a valid form of payment for debts or goods and services.

Related to the Economics in Practice on P