Types and forms of money. - SS1 Commerce Past Questions and Answers - page 1
Which type of money has intrinsic value as a tangible commodity?
Commodity money
Representative money
Fiat money
What is representative money?
Money backed by a commodity
Money representing a claim on a commodity
Money declared as legal tender by the government
What gives fiat money its value?
Intrinsic value
Government declaration as legal tender
Backing by a commodity
Which form of money exists in physical form, such as coins and banknotes?
Commodity money
Fiat money
Representative money
What is cryptocurrency?
Digital currency issued by the government
Decentralized digital currency using cryptography
Electronic money used for online transactions
How does representative money differ from fiat money?
Representative money represents a claim on a commodity, while fiat money derives its value from government declaration as legal tender.
What distinguishes physical cash from digital currency?
Physical cash refers to tangible forms of money, such as coins and banknotes, while digital currency exists only in electronic form and includes various electronic payment methods.