Recall the Application About the Brazilian City of Silva Jardim

Multiple Choice

Recall the Application about the Brazilian city of Silva Jardim that has issued its own local currency to answer the following question(s) . In order to entice local residents to spend their money on stores in town, the small city of Silva Jardim in Brazil, hatched a plan for its own currency. The currency is called the capivari and features a picture of a local rodent on the bills. The capivaris are issued by a local bank, which holds one unit of official Brazilian currency for each capivari it issued. Local merchants, however, give discounts for paying in capivaris so that local residents are therefore encouraged to make local purchases.
-According to this Application, the small city of Silva Jardim in Brazil has issued its own currency called the capivari. When people use this currency to execute transactions, this currency is being used as a

A) medium of exchange.
B) unit of account.
C) store of value.
D) commodity money.