Properties of Money Quick Check

5 of 65 of 6 Items
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 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 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 gold certificate does not represent a claim to some specific asset.

1 answer

The statement that best 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.

Fiat money, like the U.S. dollar, has value because the government maintains it and people have faith in its value, while a gold certificate is backed by a specific quantity of gold, thus representing a claim to that asset.

Similar Questions
  1. Properties of Money Quick Check2 of 62 of 6 Items Question Gold has historically functioned as money. This is due, in part, to
    1. answers icon 1 answer
  2. Properties of Money Quick Check3 of 63 of 6 Items Question Consider a hypothetical economy in which rice functions as money. In
    1. answers icon 1 answer
  3. Properties of Money Quick Check6 of 66 of 6 Items Question Which of the following answers applies to a form of fiat money and
    1. answers icon 1 answer
  4. Properties of Money Quick Check4 of 64 of 6 Items Question Elementary school students often trade food items at lunch in an
    1. answers icon 1 answer
more similar questions