Paper dollars

Question

a.

are commodity money and gold coins are fiat money.
b.

and gold coins are both commodity monies.
c.

and gold coins are both fiat monies.
d.

are fiat money and gold coins are commodity money.

Answer 1

The correct option is:

d. are fiat money and gold coins are commodity money.

Explanation: Paper dollars are considered fiat money because they do not have intrinsic value and are not backed by a physical commodity; their value comes from the trust and confidence of the people using them. Gold coins, on the other hand, have intrinsic value because they are made of gold, making them commodity money.