Which of the Following Correctly Describes the Difference Between Commodity

question 147

Multiple Choice

Which of the following correctly describes the difference between commodity money and fiat money? ​

• A) ​Fiat money is only used in Italy, and is issued by a major Italian automobile manufacturer to support Italian schools.
• B) Commodity money is either made out of a valuable commodity like silver or gold, or is redeemable for a valuable commodity. Fiat money is not.​
• C) ​Commodity money can only be used to buy commodities such as grains or lumber, while fiat money can be used to buy anything.
• D) ​Fiat money is used during times of emergency, such as hurricanes or war, when the existing stock of commodity money is inadequate to purchase needed goods and services.

---

Definitions:

Violation of a Statute

An act or omission that breaches the terms of a law formulated by a governmental body, thus subjecting the violator to legal penalties.

Legislative Enactment

The process by which legislatures make or enact laws, often involving proposed legislation being debated, amended, and voted upon.

Reasonable Person

A hypothetical individual in law whose behavior serves as a standard of care used to determine negligence by comparing actions against what is considered reasonable under the circumstances.

Reasonable Person Standard

A legal standard used to determine how an average person would responsibly act under certain circumstances for the purposes of establishing negligence or compliance in cases.