Question

Match the following with the correct answers: (1 point)
Bartering
Commodity Money
Representative Money
Fiat Money

Answer 1

Here are the matched definitions and an example for each:

- Bartering — Direct exchange of goods or services without using money (e.g., a farmer trades wheat for a tailor’s clothing).
- Commodity money — Money that has intrinsic value in itself (e.g., gold, silver, or shells used as money).
- Representative money — Tokens or paper that represent and can be exchanged for a commodity (e.g., a gold certificate redeemable for gold).
- Fiat money — Money that has no intrinsic value but is declared legal tender by government (e.g., modern U.S. dollars).