which of the following applies to a form of flat money and not a form of representative currency
Flat money is a type of currency that has value based on government decree or regulation, rather than being backed by a physical commodity. Representative currency, on the other hand, is a form of money that is backed by a physical asset, such as gold or silver. Therefore, the correct answer is “not backed by a physical commodity.”
A form of flat money does not represent the value of a physical asset or commodity. It is not backed by a specific store of value. Rather, its worth is derived from the trust and confidence placed in the issuing authority or government. A representative currency, on the other hand, is backed by a specific asset, such as gold or silver. Therefore, the characteristic that applies to a form of flat money and not to a form of representative currency is that it is not backed by a specific physical asset.
To determine which of the following applies to a form of flat money and not a form of representative currency, we need to understand the difference between the two.
Flat money, also known as fiat money, is a type of currency that has value simply because the government says it does. It does not have any intrinsic value (like gold or silver) and is not backed by a commodity. Examples of flat money include the US dollar, the euro, or the Japanese yen.
On the other hand, representative currency is a type of currency that represents a commodity, typically a precious metal like gold or silver. It is redeemable for that commodity upon demand. In the past, banknotes used to be representative currency because they could be exchanged for a fixed amount of the underlying precious metal.
Now, to determine which of the following applies to flat money and not representative currency, we need the list of options. Please provide the options you want to choose from, and I'll be happy to help you further.