When colonists in Virginia used tobacco as money,their money
A)was commodity money.
B)had no intrinsic value.
C)was fiat money.
D)had no store of value.

Question

Quizplus · Accepted Answer

Commodity money is a form of currency that has intrinsic value, such as tobacco, gold, or silver. Since tobacco was used as money in Virginia, the colonists were using commodity money. Fiat money does not have intrinsic value and relies on a government's declaration (or fiat) for its value, and thus, choice C is incorrect. Choice B is also incorrect as tobacco had value as a commodity. Finally, choice D is incorrect because tobacco, like any other form of currency, has a store of value.

When Colonists in Virginia Used Tobacco as Money,their Money