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Which of the following answers applies to a form of fiat money and not a form of representative currency?

a. Gold coins
b. Banknotes backed by gold
c. Legal tender without intrinsic value
d. Silver certificates

User Birchlabs
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1 Answer

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Final answer:

Fiat money refers to currency that has no intrinsic value but is declared by a government to be legal tender.

Step-by-step explanation:

Fiat money refers to currency that has no intrinsic value but is declared by a government to be legal tender. Of the options provided, the only one that represents fiat money is legal tender without intrinsic value. Gold coins are a form of commodity money, as they have intrinsic value due to the precious metal they are made of. Banknotes backed by gold and silver certificates were forms of representative currency, as they were backed by a commodity (gold or silver) and could be exchanged for the commodity if desired.

User Inigo Skimmer
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