Question

Identify each attribute as being associated with fiat money, commodity-backed money, or both. Drag each item on the left to its matching item on the right. Note that every item may not have a match, while some items may have more than one match. U.S. silver certificates are a historical example. not tied to anything with intrinsic, stable value more portable than commodity money commodity-backed money fiat money a type of money used in the United States prior to 1971 both not tied to a good for which the demand can change type of money used in most modern economies A government can expand the supply deliberately and quickly.

Answer 1

Attributes of fiat and commodity-backed money vary, with fiat money being portable, not tied to a physical commodity, and easily expandable by the government, while commodity-backed money has intrinsic value and is exemplified by historical U.S. silver certificates.

Step-by-step explanation:

Each attribute provided can be associated with either fiat money, commodity-backed money, or both. Here's how they match up:

• "U.S. silver certificates are a historical example." - Commodity-backed money
• "Not tied to anything with intrinsic, stable value" - Fiat money
• "More portable than commodity money" - Fiat money
• "A type of money used in the United States prior to 1971" - Both
• "Not tied to a good for which the demand can change" - Fiat money
• "Type of money used in most modern economies" - Fiat money
• "A government can expand the supply deliberately and quickly." - Fiat money

Historically, silver certificates were examples of commodity-backed money as they were backed by silver. This is different from the modern U.S. dollar, which is considered fiat money where its value is not based on a physical commodity but rather on universal faith and trust that the currency has value, reinforced by government decree that declares it as legal tender.