Fiat and Commodity Money Quiz

What are the characteristics of fiat money?

• Digital form of currency

• Not backed by a physical commodity

• Backed by a physical commodity

• Decentralized and unregulated

What are the functions of commodity money?

• Acting as a medium of exchange, a unit of account, and a means of transportation.

• Acting as a medium of exchange, a unit of account, and a store of value.

• Acting as a medium of exchange, a unit of account, and a form of credit.

• Acting as a medium of exchange, a unit of account, and a measure of time.

What is the main difference between fiat and commodity money?

• Fiat money is backed by a physical commodity, while commodity money does not have intrinsic value.

• Fiat money and commodity money are the same thing.

• Fiat money is only used in developed countries, while commodity money is used in developing countries.

• Fiat money is not backed by a physical commodity, while commodity money has intrinsic value.

Which of the following is an example of fiat money?

• United States dollar

• Barter system

• Gold

• Bitcoin

Which of the following is an example of commodity money?

• Digital currency

• Gold coins

• Silver coins

• Paper currency

What is one characteristic of fiat money?

• Limited supply

• Not backed by a physical commodity

• Backed by a physical commodity

• Digital form of currency

What is one function of commodity money?

• Medium of exchange

• Store of value

• Unit of account

• Legal tender

Which of the following is NOT a difference between fiat and commodity money?

• Commodity money is not issued by a central authority

• Fiat money is not backed by a physical commodity

• Fiat money has intrinsic value

• Fiat money can be easily counterfeited

Which of the following is NOT an example of fiat money?

• Gold

• Silver

• Bitcoin

• Paper currency

Which of the following is AN example of commodity money?

• A Gold

• C Silver

• B Bitcoin

• D Paper currency