ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Paper money distributed by the U.S. government
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Object that has intrinsic value in itself that also serves as money
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Money in the form of cash and coin
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Printed money from State banks
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Detailed explanation-1: -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-2: -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-3: -Commodity valuation is the process of deriving the intrinsic value of a commodity under optimal market conditions. In a perfectly competitive free market, the price of a commodity reflects the intrinsic value of that good.
Detailed explanation-4: -Commodity money takes the form of a commodity with intrinsic value. Examples: Gold, silver, cigarettes.
Detailed explanation-5: -Commodity-backed money is money that can be exchanged for a specific commodity on demand. It has no intrinsic value but derives its value from the commodities that have value like gold or silver.