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?

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Sammy

Social Studies

9 July, 06:24

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?

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Spencer Powers · Answer 1

The type of money the economy used in the following situation above wherein certificates are used instead of silver would be called 'representative money'. This is the money wherein people use certificates or bills as currency in order to substitute for a valuable commodity.