Which of the following correctly describes the difference between commodity money and fiat money?
A) Fiat money has value based on the material from which it is made, while commodity money is accepted by law and not because of its tangible value.
B) Commodity money is either made out of a valuable commodity like silver or gold, or is redeemable for a valuable commodity. Fiat money is not.
C) Commodity money can only be used to buy commodities such as grains or lumber, while fiat money can be used to buy anything.
D) Fiat money is used during times of emergency, such as hurricanes or war, when the existing stock of commodity money is inadequate to purchase needed goods and services.
Correct Answer:
Verified
Q4: Which of the following is the most
Q7: The primary functions of money are:
A) velocity,
Q8: Comparing how many dollars it takes to
Q10: Though many assets can be used as
Q10: What is the "unit of account" function
Q11: A barter economy is one in which
A)
Q11: For barter to occur, traders must have
Q12: In the United States, the purchasing power
Q13: Which of the following provides the best
Q14: Buying a cup of coffee with a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents