Chapter 14, Problem 7AA

To determine

To ascertain: The correct term which defines the condition for money.

Explanation of Solution

The correct answer is issue.

The commodities like cattle and expensive gems had been used as the medium of exchange and these commodities were considered as commodity money.

Apart from their value as money, they have a value as a commodity, or as fine. Representative money for a valuable commodity such as gold or silver is money backed by or exchangeable for.

Precious metals like gold and silver work very well as a medium of exchange and have often been used as such throughout history. It is the recent times when paper money has been widely famous and used as the medium of exchange and considered it as the currency or money.

At one time, the government of the U.S. issued representative money such as in the form of gold certificates, silver, etc.