For much of U.S. history, citizens could exchange paper dollars for a certain amount of gold. This made paper money in the United States an example of:A.representative money.B.inflated money.C.commodity money.D.fiat money.
Question
For much of U.S. history, citizens could exchange paper dollars for a certain amount of gold. This made paper money in the United States an example of:A.representative money.B.inflated money.C.commodity money.D.fiat money.
Solution
The correct answer is A. Representative money. This is because representative money is any medium of exchange, often printed on paper, that represents something of value, but it itself has little or no value of its own (intrinsic value). In this case, the paper dollars represent the gold they can be exchanged for.
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