1- Gold has historically functioned as money. This is due, in part, to the willingness of others to accept it as valid payment for goods and services. In this case, gold is functioning as a(n)(1 point)

• unit of account.
• medium of exchange
• fiat money.
• store of value.

2- Consider a hypothetical economy in which rice functions as money. In addition to being valued as money, rice is valued as a consumer good. In this scenario, rice is said to be(1 point)

• commodity money.
• fiat money.
• representative money.
• currency.

3- Elementary school students often trade food items at lunch in an effort to have the best lunch possible. In one elementary school, pudding cups have become so popular that they have become a unit of account. This means that(1 point)

• students are eager to accept pudding cups in exchange for any lunch item.
• a pudding cup will likely have the same purchasing power tomorrow as it does today.
• a pudding cup entitles its holder to a share of some valuable asset.
• the price of other lunch items is expressed in quantities of pudding cups.

4-Which of the following illustrates the difference between the U.S. dollar, a form of fiat money, and a U.S. gold certificate, a representative currency?

• A gold certificate does not have value in addition to its value as money.
• A gold certificate does not represent a claim to some specific asset.
• A U.S. dollar does not represent a claim to some specific asset.
• A U.S. dollar does not have value in addition to its value as money.