Which of the following statements is true?
A) Only a few objects are eligible to be considered a commodity.
B) A commodity money comes into existence through private,not government,decisions.
C) A fiat money represents an object that has intrinsic value.
D) A commodity-backed money and fiat money have the same inherent or intrinsic value.
E) A commodity money is often determined by government bureaucrats.

Question

Quizplus · Accepted Answer

A commodity is anything that can be bought or sold, such as agricultural goods or raw materials. Commodity money is a type of money that uses a commodity, such as gold or silver, as its value. Choice A is false because many objects can be considered commodities, not just a few. Choice C is false because a fiat money has value because the government has declared it to be legal tender, not because it has intrinsic value. Choice D is false because a commodity-backed money has inherent value, while a fiat money does not. Choice E is false because a commodity money is determined by the market, not government bureaucrats.

Which of the Following Statements Is True