Related to the Economics in Practice on p. 509: 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 any object which has been used as a medium of exchange and has a value independent of its use as money. In this case, the red feathers of the Scarlet Honeyeater bird were used as a medium of exchange and had value due to their decorative nature, making them commodity money. Fiat money (A) is money that has value because a government has declared it to be legal tender, while token money (B) is a type of fiat money where the value is derived from the fact that it can be exchanged for a specific good or service. Legal tender (D) refers to a form of payment that a creditor is required to accept by law.

Related to the Economics in Practice on P