Question

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

Answer 1

Answer:

It can be exchanged for a valuable good.

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

It can be traded for a commodity such as silver.

Explanation:

Answer 2

Answer:

It can be exchanged for a valuable good.

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

It can be traded for a commodity such as silver.

Explanation:

Representative money is a type of money that, unlike merchandise money, is based on another asset, such as money backed by gold, silver, oil or another currency, which has the quality of being convertible to the asset at which represents, which can be a kind of metallic money. This expression is also used to refer to a certificate, physical or electronic, that represents the issuer's intention to pay the certificate holder, such as, for example, a cashier's check from a bank. It differs from fiat money in that the latter is not convertible.