An important factor in the evolution of commodity money to fiat money is:
A)a desire to reduce transaction costs.
B)a desire to increase transaction costs.
C)the fact that gold is no longer highly
D)valued. a desire to use gold for jewelry.

Question

Quizplus · Accepted Answer

The evolution of commodity money to fiat money was driven by a desire to reduce transaction costs. Commodity money systems required physical goods to be exchanged as currency, which was often costly and inconvenient. Fiat money, on the other hand, is backed by the government and does not require physical exchange, making transactions easier and cheaper to conduct.

An Important Factor in the Evolution of Commodity Money to Fiat