Question

personal possession of currency is prohibited in canadian prisons; although, in practice, prisoners still exchange goods and services. canadian prisoners used cigarettes as a medium of exchange until smoking was banned in canadian prisons in 2008. after 2008, prisoners looked to other items on the commissary menu to facilitate exchange. in 2008, the wall street journal reported that energy bars had caught on as money in some american prisons, and the trend is slowly catching on in canadian prisons as the smoking ban's effects sink in. outside of canadian prisons, people use the canadian dollar for day-to-day transactions. one important difference between using energy bars and using dollars as money is that_____have intrinsic value. energy bars are an example of____money.

Answer 1

The key difference is that energy bars have intrinsic value, making them commodity money, whereas Canadian dollars are fiat money with value backed by government authority.

Step-by-step explanation:

One important difference between using energy bars and using Canadian dollars as money is that energy bars have intrinsic value. Energy bars are an example of commodity money, which means they have value outside of their use as money. This contrasts with Canadian dollars, which are an example of fiat money. Fiat money has no intrinsic value and is backed by the government that issues it. It's accepted as money because the government maintains its value and the society using it agrees on its worth as a medium of exchange.