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Money

Question 7 • * HSA 26-27 Economics

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.

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