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Which of the Following Statements Correctly Differentiates Between Commodity Money

Question 22

Multiple Choice

Which of the following statements correctly differentiates between commodity money and fiat money?


A) Commodity money is created by the government while fiat money is created in the private sector.
B) Fiat money is created by the government while commodity money is created by the government.
C) Commodity money can be used for transactions in the international market, while fiat money cannot be used for transactions in the international market.
D) Fiat money has value decreed by the government, while commodity money is valued because of the material it is made of.

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