Which of the following answers applies to a form of fiat money and not a form of representative currency?
A- Can't be controlled by the government.
B- Does not derive its value from government regulation.
C- Is not widely accepted as a method of payment because it can be redeemed everywhere.
D- Does not represent a claim to some specific asset.
D- Does not represent a claim to some specific asset.
The answer that applies to a form of fiat money and not a form of representative currency is option D - Does not represent a claim to some specific asset.
To determine which answer applies to a form of fiat money and not a form of representative currency, we need to understand the definitions of the terms involved.
Fiat money is a currency that has value because a government says it does, meaning its value is backed by the trust and confidence of the people using it, rather than being backed by a physical commodity like gold or silver.
Representative currency, on the other hand, is a form of money that represents a claim to a specific asset, typically a commodity like gold or silver. It is not the physical asset itself, but rather a paper or electronic representation of it.
Now, let's analyze the options:
A- "Can't be controlled by the government": This does not apply to fiat money because fiat currency is under the control of the government issuing it.
B- "Does not derive its value from government regulation": This answer applies to fiat money because its value is not determined by government regulations, but rather by the trust and confidence of the people using it.
C- "Is not widely accepted as a method of payment because it can be redeemed everywhere": This answer does not apply to either fiat money or representative currency because both are typically widely accepted as a method of payment.
D- "Does not represent a claim to some specific asset": This answer applies to fiat money because it does not represent a claim to any specific asset, unlike representative currency which represents a claim to a physical commodity.
Therefore, the answer that applies to a form of fiat money and not a form of representative currency is option B - "Does not derive its value from government regulation."