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What aspect of fiat money allows it to have more stability than representative money?
Fiat money has more stability than representative money primarily because it is not tied to a physical commodity, such as gold or silver, which can fluctuate in value due to market conditions. Instead, fiat money's value is derived from the trust and confidence that people and governments place in it, as well as the stability of the issuing authority. This allows central banks to manage the money supply more effectively, responding to economic changes and maintaining stability through monetary policy. As a result, fiat money can better adapt to economic fluctuations, promoting overall economic stability.
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How does representative money compare to commodity money?
Representative money is a type of currency that represents a claim on a commodity, such as gold or silver, allowing holders to exchange it for that commodity, while commodity money is actual physical goods with intrinsic value, like gold coins or silver bars. Unlike commodity money, representative money does not have intrinsic value itself; its value is derived from the trust that it can be exchanged for a specific amount of a commodity. This distinction allows representative money to be more flexible and practical for everyday transactions.
What is the difference between fiat money and representative money?
the difference between representative money and fiat money is that?A)representative money can be converted into silveror gold;fiat money cannot.B)representative money is worth more per dollar than fiat money; which is actually worthless.C)fiat money is counted in coins; representative money is counted in paper.D)fiat money is mre traditional than representative money,which is a newer concept. :)
What is the difference between representative money and commodity money?
A) Commodity money consists of objects used as money that contains their own value, but representative money is a specific group of the commodity objects. B) Commodity money consists of objects that have value in and of themselves, but representative money makes use of objects because the holder can exchange them for something else of value. C) Representative money allows objects to be exchanged for something else, but commodity money has value because the government decreed it is an acceptable means to pay debts. D) Representative money consists of objects that have value in and of themselves, but commodity money makes use of objects because the holder can exchange them for something else of value The answer is B.
Is the type of money used in the US commodity money representative money or fiat money?
puppys
What are objects that have value in themselves and that are also used as money?
Representative money
Why is representative money more useful than commodity money?
What is the difference between commodity money and representative money
What is the difference between fiat money and representative money?
the difference between representative money and fiat money is that?A)representative money can be converted into silveror gold;fiat money cannot.B)representative money is worth more per dollar than fiat money; which is actually worthless.C)fiat money is counted in coins; representative money is counted in paper.D)fiat money is mre traditional than representative money,which is a newer concept. :)
What is the difference between representative money and commodity money?
A) Commodity money consists of objects used as money that contains their own value, but representative money is a specific group of the commodity objects. B) Commodity money consists of objects that have value in and of themselves, but representative money makes use of objects because the holder can exchange them for something else of value. C) Representative money allows objects to be exchanged for something else, but commodity money has value because the government decreed it is an acceptable means to pay debts. D) Representative money consists of objects that have value in and of themselves, but commodity money makes use of objects because the holder can exchange them for something else of value The answer is B.
Is the type of money used in the US commodity money representative money or fiat money?
puppys
What are objects that have value in themselves and that are also used as money?
Representative money
Which is a power of the house of representative?
money bills
Which is an example of representative money?
an IOU note
What is financial stability?
Financial stability is the ability to meet your monthly obligations. With most people financial stability includes the ability to save money.
What is a financial aspect of a business?
Financial aspect of a business refers to the amount of funds or money available in the business. The financial aspect of any business is quite pivotal to its success.
What are the responsibilities of sale representative?
to take care of money and to get funds
What is the house of Representative jobs?
they aprove money spent for taxes
What term that best exemplifies the freedom to spend your money the way you want?
financial stability (apex)
