Which of the following answers applies to a form of fiat money and not a form of representative currency?
A form of fiat money is currency that is not backed by a physical commodity like gold or silver, but rather by the government that issues it. Representative currency, on the other hand, is currency that is backed by a physical commodity or is redeemable for a physical commodity. Therefore, the answer that applies to a form of fiat money and not representative currency is:
- Value is derived from the trust and confidence of the issuing government.