ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Objects that have value in themselves and that are also used as money. Example: Salt, Cattle, and precious stones have been used in various societies as this. Objects that have value because the holder can exchange them for something else of value.

Detailed explanation-3: -Commodity Money: Commodity money is that money whose face value is equal to its commodity value. In other words, face value of the money like coin was equal to its intrinsic (commodity) value. It is also known as full-bodied money.

Detailed explanation-4: -Commodity money has been used throughout history as a medium of economic exchange. Commodity money is money that has intrinsic value, meaning that it has value even if it is not used as money. Examples of commodity money include precious metals, foodstuffs, and even cigarettes.

Detailed explanation-5: -For full-bodied money, the money value and commodity value of the money are equal in the market.