Question

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)
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 gold certificate does not represent a claim to some specific asset.
A gold certificate 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 U.S. dollar 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 is because fiat money, like the U.S. dollar, is not backed by any physical commodity and does not represent a claim to a specific asset, while a gold certificate is backed by a specific amount of gold, representing a claim to that asset.