40554
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Introduction to Macroeconomics

Question 40554 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

Sky needs to replace the motor in the tractor that is used on her family farm. She exchanges gold coins for the services provided by the mechanic. The money that Sky is using is .

Answer
A
fiat money
B
representative money
C
commodity money

Explanation

Gold coins are commodity money because they are made from a valuable commodity—gold—which has value in itself. Sky uses the coins to pay the mechanic, so the money she is using is commodity money, not fiat money or representative money.

AI-written and checked against the verified answer.

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