Answer to Question #51396 in Macroeconomics for Yoyo
Because it is no longer backed by the potential for conversion to gold, modern Canadian fiat currency is no longer able to serve as a form of money.
Commodity money is based on a good, often a precious metalsuch as gold or silver, which has uses other than as a medium of exchange
Representative money is a claim on the commodity rather than the actual good. Fiat money derives its value from government regulation or law.
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