When prisoners use cigarettes or some other good as money,cigarettes become
A)commodity money,but do not function as a unit of account.
B)commodity money and function as a unit of account.
C)fiat money,but do not function as a unit of account.
D)fiat money and function as a unit of account.

Question

Quizplus · Accepted Answer

When prisoners use cigarettes or other goods as money, they become a commodity that has value and is used as a medium of exchange. As they are used for exchange, they also function as a unit of account, measuring the value of other goods and services. Therefore, cigarettes can be classified as both commodity money and the unit of account.

When Prisoners Use Cigarettes or Some Other Good as Money,cigarettes