ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fiat Money
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Representative Money
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Commodity Money
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None of the above
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Detailed explanation-1: -Representative money has value because the holder can exchange it for something else of value.
Detailed explanation-2: -An exchange rate is a rate at which one currency will be exchanged for another currency. Most exchange rates are defined as floating and will rise or fall based on the supply and demand in the market. Some exchange rates are pegged or fixed to the value of a specific country’s currency.
Detailed explanation-3: -More specifically, the term representative money has been used variously to mean: A claim on a commodity, for example gold and silver certificates. In this sense it may be called “commodity-backed money". Any type of money that has face value greater than its value as material substance.
Detailed explanation-4: -What Is Fiat Money? Fiat money is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.