Question

Soldiers in a World War II prisoner-of-war camp used cigarettes as money. used U.S. dollars as a commodity money. used gold as a fiat money. used cowrie shells as money.

Answer 1

Option: Used cigarettes as money.

Step-by-step explanation:

Soldiers in a World War II prisoner-of-war camp used cigarettes as commodity money. Goods were given to the prisoners, but they have a dilemma of how to buy goods among themselves to ensure that they will be as satisfied. Soldiers all received somewhat the same rations, but some of them had different preferences like jams and chocolates so the solution was to trade. They used cigarettes as commodity money and it gained its value within a month in camps.