When the Soviet Union began breaking up in the late 1980s, cigarettes began replacing the ruble as the medium of exchange, even though the ruble was legal tender. The cigarettes provide an example of fiat money.

Question

Quizplus · Accepted Answer

Cigarettes in this context are considered commodity money, not fiat money, because their value comes from a physical commodity rather than being decreed by a government as legal tender.

When the Soviet Union Began Breaking Up in the Late