Which of the following illustrates the difference between the U.S. dollar, a form of fiat money, and a U.S. gold certificate, a representative currency?(1 point)

Question

Responses

A gold certificate does not have value in addition to its value as money.
A gold certificate does not have value in addition to its value as money.

A U.S. dollar does not represent a claim to some specific asset.
A U.S. dollar does not represent a claim to some specific asset.

A U.S. dollar does not have value in addition to its value as money.
A U.S. dollar does not have value in addition to its value as money.

A gold certificate does not represent a claim to some specific asset.

Answer 1

The correct response that illustrates the difference between the U.S. dollar (a form of fiat money) and a U.S. gold certificate (a representative currency) is:

A U.S. dollar does not represent a claim to some specific asset.

This statement highlights that the U.S. dollar does not have intrinsic value or a claim to a specific commodity (like gold), which is a characteristic of fiat money. In contrast, a gold certificate represents a claim to a specific amount of gold, indicating that it is a form of representative currency.