Question

What is true of representative money? Check all that apply.

It can be exchanged for a valuable good.
It was once the most common form of money.
It was used in systems involving a "gold standard."
It can be traded for a commodity such as silver.
It is made with precious metals or stones.

Answer 1

True:
- It can be exchanged for a valuable good.
- It was once the most common form of money.
- It was used in systems involving a "gold standard."
- It can be traded for a commodity such as silver.

False:
- It is made with precious metals or stones. (That describes commodity money; representative money itself has little intrinsic value but is redeemable for a commodity.)