Question

Which of the following most accurately explains why fiat money differs from commodity money?

Fiat money can also be used as a productive input.
Fiat money has value because it is a precious metal such as gold.
Fiat money only has value as a medium of exchange.
Fiat money has value because it enables the barter system to work.

Answer 1

I am pretty sure that the following which most accurately explains why fiat money differs from commodity money is Fiat money only has value as a medium of exchange I choose this according to the fact it is a more convenient form of money which can turn your operations with money into a paper and make everything easier!