Asked by Michael Williams on May 01, 2024
Verified
U.S. dollars are an example of commodity money and hides used to make trades are an example of fiat money.
Commodity Money
Money that takes the form of a commodity with intrinsic value
Fiat Money
Money without intrinsic value that is used as money by government decree
- Recognize the role of commodity money in history and its characteristics compared to fiat money.
Verified Answer
JH
Jabira HoldenMay 02, 2024
Final Answer :
False
Explanation :
U.S. dollars are an example of fiat money, which is currency that a government has declared to be legal tender, but it is not backed by a physical commodity. Hides used to make trades are an example of commodity money, which is money whose value comes from a commodity of which it is made.
Learning Objectives
- Recognize the role of commodity money in history and its characteristics compared to fiat money.