Which of the following most accurately explains why fiat money differs from commodity money?

Question

anonymous · Answer

Fiat money can also be used as a productive input.
       Fiat money has value because it is a precious metal such as gold.
       Fiat money only has value as a medium of exchange.
       Fiat money has value because it enables the barter system to work.

perl · Answer

A commodity money is a medium of exchange that has value other than being used as a medium of exchange. For example silver is a commodity money because silver has industrial application , silver has electrical application because it is a good conductor of electricity.

anonymous · Answer

Which of the following best describes why banks aren't allowed to loan out all of their deposits at once?.

anonymous · Answer

Which of the following best describes why banks aren't allowed to loan out all of their deposits at once?

anonymous · Answer

If banks loaned out all of their deposits, it would be impossible to meet customers' demands for withdrawals.
       If banks loaned out all of their deposits, the government would be unable to calculate the bank's tax burden.
       If banks loaned out all of their deposits, there wouldn't be enough money left to provide new customers with loans.
       If banks loaned out all of their deposits, the money supply would grow much too slowly.

anonymous · Answer

@snozberry

anonymous · Answer

@perl