Question

What is true of representative money? Check all that apply

Answer 1

Answer: as per the complete question, theseare the answers.

A. It can be exchanged for a valuable good.

C. It was used in systems involving a "gold standard."

D. It can be traded for a commodity such as silver.

Explanation:

Money is in fact a medium of exchange and it has made trade and exchange of goods and even services more effective, efficient and less time consuming.

Money can be used to purchase valuable goods. This is possible because money can be used to measure the price of a commodity.

Gold standard is a standard way of setting the value of money. You can find more information about this online.

Just as well as exchanging for valuable goods, money can be used to trade commodities such as silver.

In modern times, money are not made of precious metals. Today they are printed by a government which has the authority to issue money and every citizen of that country is obliged to accept such printed notes and coins as valid money.

Answer 2

Complete Question

What is true of representative money? Check all that apply.

A. It can be exchanged for a valuable good.

B. It was once the most common form of money.

C. It was used in systems involving a "gold standard."

D. It can be traded for a commodity such as silver.

E. It is made with precious metals or stones.

Answer to this Question:

A. It can be exchanged for a valuable good.

C. It was used in systems involving a "gold standard."

D. It can be traded for a commodity such as silver.

Yes, it is very much true that money can be exchanged for valuable goods. We can certainly buy goods in return for giving money. Different commodities can be purchased by exchanging it. This is very common method which you can see all around you now-a-days. Money can also be used to buy the gold. It means money's form can be changed in this particular way, the gold then can be traded in the same way as you can use money as we have mentioned in the option A. Money can also be traded directly for a commodity such as sliver or other precious metals as well. Money's main function in all of the valid options here will remain the same; Exchange, used to purchase another commodity by using it in its pure form or trading it indirectly in another form. Whereas it totally different from the Barter trade where people used different commodities as an exchange medium to buy another one.