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)

Question

Responses

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 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 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.

Answer 1

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 accurately describes how fiat money (like the U.S. dollar) has value based on government regulation and the trust of its users, while a gold certificate (representative currency) represents a specific claim to an amount of gold that can be redeemed.