Which of the following answers applies to a form of fiat money and not a form of representative currency?(1 point) 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. Does not derive its value from government regulation. Does not derive its value from government regulation. Can't be controlled by the government.
Can't be controlled by the government.
The answer that applies to a form of fiat money and not a form of representative currency is: Can't be controlled by the government.
To determine which of the given answers applies to a form of fiat money and not a form of representative currency, we need to understand the characteristics of both types of currency.
Fiat money is a type of currency that has value because the government declares it to be legal tender. It is not backed by a physical commodity, such as gold or silver, and its value is derived from government regulation and the trust people have in it.
On the other hand, representative currency is a form of money that represents a claim to a specific asset, such as gold or silver. It is backed by the value of the asset it represents.
Let's analyze the given options:
1. "Is not widely accepted as a method of payment because it can be redeemed everywhere." - This statement is true for representative currency as it implies that the currency can be exchanged for a specific asset. Therefore, this answer does not apply to fiat money.
2. "Does not represent a claim to some specific asset." - This statement applies to fiat money as fiat currency is not backed by a specific asset. It derives its value from government regulation and public acceptance. This answer applies to fiat money.
3. "Does not derive its value from government regulation." - This statement is false for fiat money as the value of fiat currency is derived from government regulation. Government intervention and policies play a significant role in maintaining the value of fiat money. This answer does not apply to fiat money.
4. "Can't be controlled by the government." - This statement is false for fiat money because fiat currency is controlled by the government. The government has the authority to issue, regulate, and control the supply of fiat money. This answer does not apply to fiat money.
Based on our analysis, the correct answer is: "Does not represent a claim to some specific asset." This response applies to fiat money and not representative currency.