ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Commodity money
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Fiat money
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Representative money
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The gold and silver standard
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Detailed explanation-1: -Commodity money is the type of money that is made of precious metals or commodities that have intrinsic value. It is not just a token or representative of monetary value like banknotes. Its worth remains intact even after it is melted. Gold and silver coins are the perfect example of commodity money.
Detailed explanation-2: -Examples of Commodity Money: Some examples of commodity money are: Gold. Copper.
Detailed explanation-3: -Early forms of money were often commodity money-money that had value because it was made of a substance that had value. Examples of commodity money are gold and silver coins.
Detailed explanation-4: -Money is a commodity accepted by general consent as a medium of economic exchange. It is the medium in which prices and values are expressed.