Sarah is shopping for groceries at the local supermarket. She paid for her groceries using a $100 bill recently issued by the US government. What type of money did Sarah use for this transaction? A)commodity money B)flat money C)digital money D)representative money
Social Studies · High School · Thu Feb 04 2021
Answered on
Given the statement:
Sarah is shopping for groceries at the local supermarket. She paid for her groceries using a $100 bill recently issued by the US government.
Determine what type of money did Sarah use for the transaction.
Explanation:
Sarah used Fiat money to process the transaction. Fiat money can be defined as the government-issued commodity, which has a different value basing it on the products due to inflation. Fiat money is printed by the national bank and is the only one authorized to do it. We must take note that Fiat money must is not the same as cryptocurrency or other commodities, since they may not be mandated by the government.