ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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trade goods or services between two people without the exchange of money.
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a form of money which has an intrinsic value because it is precious like gold and silver.
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currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value.
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money that consists of goods traded like food and cars.
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Detailed explanation-1: -Commodity money has intrinsic value because it has other uses besides being a medium of exchange. Fiat money serves only as a medium of exchange, because its use as such is authorized by the government; it has no intrinsic value. The Fed reports several different measures of money, including M1 and M2.
Detailed explanation-2: -Examples of Commodity Money: Some examples of commodity money are: Gold. Copper.
Detailed explanation-3: -Commodity money is money whose value comes from a commodity of which it is made. Commodity money consists of objects having value or use in themselves (intrinsic value) as well as their value in buying goods.
Detailed explanation-4: -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.