Properties of Money Quick Check

Question

6 of 66 of 6 Items
Question
Which of the following answers applies to a form of fiat money and not a form of representative currency?(1 point)
Responses

Does not represent a claim to some specific asset.
Does not represent a claim to some specific asset.

Can't be controlled by the government.
Can't be controlled by the government.

Is not widely accepted as a method of payment because it can be redeemed everywhere.
Is not widely accepted as a method of payment because it can be redeemed everywhere.

Does not derive its value from government regulation.

Answer 1

The correct response that applies to a form of fiat money and not a form of representative currency is:

Does not represent a claim to some specific asset.

Fiat money has value by government decree and does not have intrinsic value or a backing of a physical asset, such as gold or silver, which is often the case with representative currency.