Question 1
After World War II, cigarettes were used as money in Germany. This is an example of
◦ fiat money.
◦ legal money.
◦ token money.
◦ commodity money.
Question 2
The U.S. dollar is an example of fiat money because
◦ it is the strongest currency in the world.
◦ it is the most widely used currency in international trade.
◦ it is backed by a large reserve of gold and silver.
◦ by law, it is decreed as money.