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

Question

Responses

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 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.

Does not derive its value from government regulation.

Answer 1

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

Does not represent a claim to some specific asset.

Fiat money does not have intrinsic value or a claim to a specific asset, while representative currency is backed by a physical asset, such as gold or silver.