Which of the following best describes commodity money?
A. Money backed by government law
B. Paper money that represents gold
C. Money that has value on its own
D. Virtual money used online
Answer (2)
The correct answer is letter C. Money that has value on its ownCommodity money is something valuable by itself, like gold, silver, salt, or tobacco. For example, in the past, tobacco was used as money in the Philippines during the Spanish period because it had real value and could be used even if not traded.
The best description of commodity money is C. Money that has value on its own.This means the money itself is made of something valuable, like gold or silver, not just a piece of paper or digital number.
