Consider a hypothetical economy in which rice functions as money. In addition to being valued as money, rice is valued as a consumer good. In this scenario, rice is said to be (1 point)
O fiat money.
• representative money.
• commodity money.
• currency.
Elementary school students often trade food items at lunch in an effort to have the best lunch possible. In one elementary school, pudding cups have become so popular that they have become a unit of account. This means that (1 point)
• students are eager to accept pudding cups in exchange for any lunch item.
O a pudding cup entitles its holder to a share of some valuable asset.
• a pudding cup will likely have the same purchasing power tomorrow as it does
today.
• the price of other lunch items is expressed in quantities of pudding cups.
Which of the following illustrates the difference between the U.S. dollar, a form of fiat money, and a U.S. gold certificate, a representative currency? (1 point)
• A gold certificate does not have value in addition to its value as money.
O A U.S. dollar does not have value in addition to its value as money.
• A gold certificate does not represent a claim to some specific asset.
• A U.S. dollar does not represent a claim to some specific asset.
Which of the following answers applies to a form of fiat money and not a form of representative currency? (1 point)
o Is not widely accepted as a method of payment because it can be redeemed
everywhere.
• Can't be controlled by the government.
• Does not represent a claim to some specific asset.
• Does not derive its value from government regulation.