ECONOMICS
MONEY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
wigwam
|
|
|
cheese
|
|
|
tomtoms
|
|
|
wampum
|
Detailed explanation-1: -Wampum was the first fiat money used in the America’s. It had a set value, equal to a certain amount of gold, established by Connecticut in 1645. Since the government of Connecticut established it as official money it is fiat money. The concept of paper currency was not well regarded early on.
Detailed explanation-2: -Fiat money is backed by a country’s government instead of a physical commodity or financial instrument. This means most coin and paper currencies that are used throughout the world are fiat money. This includes the U.S. dollar, the British pound, the Indian rupee, and the euro.
Detailed explanation-3: -For the most part, bills of credit were fiat money.
Detailed explanation-4: -The U.S. dollar is considered to be both fiat money and legal tender, accepted for private and public debts. Legal tender is basically any currency that a government declares to be legal.
Detailed explanation-5: -The British pound sterling is the oldest fiat currency that still changes hands today, dating back to 1694.