Tom, the jeweler, owed his brother, Jesse some money. Something came up and Jesse needs the money right away. Tom did not have the cash and so, he gave Jesse commodity money in the form of gold.

FINANCIAL MARKETS

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Fiat Money
B	Representative money
C	Commodity Money
D	Specie

Explanation:

Detailed explanation-1: -Examples of commodity money are gold and silver coins. Gold coins were valuable because they could be used in exchange for other goods or services, but also because the gold itself was valued and had other uses. Commodity money gave way to the next stage-representative money.

Detailed explanation-2: -Money can be defined as the medium of exchange, such as notes, coins, and demand deposits, used to pay for commodities and services. The value or price of an item or service is paid for using money. The US dollar is the official currency of the United States of America.

Detailed explanation-3: -The United States Dollar (USD), the Euro and most other major currencies are fiat monies.

Detailed explanation-4: -Commodity Money. Fiat Money. Fiduciary Money. Commercial Bank Money. Metallic Money. Paper Money. Reserve Money. 16-Jul-2021

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS