Identify the type of money used for each transaction.

Tiles:

1) Chris bought a bagel with coins

issued by the government.

2) Karen bought a bike by exchanging

it for her silver receipt.

3) Luke paid six apples for two

dozen eggs.

Pairs:

1) representative money

2) commodity money

3) fiat money

Question

Business

Chum

15 July, 22:11

Identify the type of money used for each transaction.

Tiles:

1) Chris bought a bagel with coins

issued by the government.

2) Karen bought a bike by exchanging

it for her silver receipt.

3) Luke paid six apples for two

dozen eggs.

Pairs:

1) representative money

2) commodity money

3) fiat money

+5

Answers (1)

Know the Answer?

Azaria Rowe · Answer 1

1) Chris bought a bagel with coins issued by the government. - Fiat money

2) Karen bought a bike by exchanging it for her silver receipt. - Representative money

3) Luke paid six apples for two dozen eggs. - Commodity money

Explanation:

Fiat money is that currency which the government print. Thus, purchasing bagel with coins is an example of using fiat money. The representative money is printed on paper it can be receipts of anything which is used as the medium of exchange and it has no intrinsic value. However, commodity money is the money that has intrinsic value but no legal obligations are associated with it.

Identify the type of money used for each transaction.Tiles:1) Chris bought a bagel with coinsissued by the government.2) Karen bought a bike by exchangingit for her silver receipt.3) Luke paid six apples for twodozen eggs.Pairs:1) representative money2) commodity money3) fiat money