Question

The ancient Chinese created a new form of money to use in their society: representative money. Which of these objects is the best example of representative money? A. a bead B. a shell C. a dollar bill D. a gold ring

Answer 1

The best example of representative money is:

C. A dollar bill.

Step-by-step explanation:

In ancient times, the people obtained products and services different that they produced by barter, but that method was difficult at moment of identifying the value of the products exchanged, then, the representative money is a reference of the value, a dollar bill actually should be costing by its materials and impression, but it costs one dollar, that's not its real value, if not a reference for acquiring products and services with it easily.

Answer 2

The correct answer is C, as a dollar bill is an example of representative money.

Representative money is a type of money that, unlike merchandise money, is based on another asset, such as money backed by gold, silver, oil or another currency, which has the quality of being convertible to the asset at which represents, which can be a kind of metallic money. This expression is also used to refer to a physical or electronic certificate that represents the issuer's intention to pay the certificate holder, such as, for example, a check.