Question

During wartime, a small country issued certificates to the public to raise money. Each certificate promised to pay the holder a certain amount in silver. After the war was over, the population continued exchanging these certificates instead of converting them to silver. What type of money did this economy use? commodity fiat representative precious metal NextReset

Answer 1

Representative money is the answer

Answer 2

The type of money that the economy used is REPRESENTATIVE MONEY. Representative money refers to an item that has no intrinsic value which can be exchanged on demand for a commodity that does not possess intrinsic value. Thus, the certificate issued is a representative money.