select the correct answer.\nsarah is shopping for groceries at the local supermarket. she paid for her…

select the correct answer.\nsarah 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?\na. commodity money\nb. fiat money\nc. digital money\nd. representative money

select the correct answer.\nsarah 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?\na. commodity money\nb. fiat money\nc. digital money\nd. representative money

Answer

Brief Explanations:

Fiat money is currency declared legal - tender by a government that has no intrinsic value and is not backed by a commodity. The US - issued $100 bill is a form of fiat money. Commodity money has intrinsic value like gold or silver. Digital money exists only in electronic form. Representative money is backed by a commodity.

Answer:

B. fiat money