Commodity money is the money whose value comes from a commodity from which it is made of. The products included in the Commodity money consists of objects having its own value. Commodity money is the money who use in themselves by its own intrinsic value as well as their value for buying goods.
The Commodity money is different from the representative money. Because the representative money does not have its own intrinsic value.
The fiat money, which derives its value from having been established as money by government regulation.
Examples of the commodity Money that have been used as media of exchange include precious metals and stones, grain, animal parts (such as beaver pelts), tobacco, fuel, and others.
Sometimes several types of commodity money were used together, with fixed relative values, in various commodity valuation or price system of economies.
Let’s start the quiz
01) The money which has its own intrinsic value. But it is not used as money is _______called which of the following type of money?
A) Commodity Money
B) Credit Money
C) Fiduciary Money
D) Representative Money
Correct answer is option ” A”
02) This element of intrinsic value is the primary characteristic of which of the following tupe of money?
A) Commodity Money
B) Credit Money
C) Fiduciary Money
D) Representative Money
Correct answer is option ” A”
03) Any goods can be used as _________ which is tradeable and has to comply with a set of standards.
A) Commodity Money
B) Credit Money
C) Fiduciary Money
D) Representative Money
Correct answer is option ” A”
04) Whether this statement is false that “Any commodity that did not comply with the standards of wide in demand, durable, portable, and easy to store cannot be accepted as the commodity money”.
A) Yes
B) No
Correct answer is option ” B”
05) Whether this statement of true that the Gold coins, tobacco, and soybeans can all be used as commodity money.
A) Yes
B) No
Correct answer is option ” A”
06) Why the Gold coins, tobacco, and soybeans can all be used as commodity money?
A) Because They are all characterized as having intrinsic value
B) Because they found as the means of exchange
C) Only option A
D) Option A & B Both
Correct answer is option ” D”
07) The money whose value comes from a commodity of which it is made is known as _________.
A) Real Money
B) Commodity Money
C) Paper Money
D) None of the above
Correct answer is option “B”
08) Which example is not related to the Commodity Money?
A) Gold
B) Silver
C) Labour
D) Cotton Bins
Correct answer is option “C”
Try more MCQ’s…….
Classification of money
Paper Money
Representative Money
Full Bodied Money
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