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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.
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