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 correct response that 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.

This statement highlights that fiat money, like the U.S. dollar, has value because a government maintains it and people have faith in its value, but it does not correspond to a physical commodity. In contrast, a gold certificate represents a claim to a specific amount of gold, linking it to a tangible asset.