All of the following are problems associated with commodity money EXCEPT
A) it is a cumbersome form of payments system.
B) commodities tend to have little value in and of themselves.
C) its value is dependent on its purity.
D) costs are incurred in certifying the purity and weight of commodity money.

Question

Quizplus · Accepted Answer

The statement "commodities tend to have little value in and of themselves" is not a problem associated with commodity money. In fact, the value of commodities is what makes them suitable for use as money. The other options are all problems associated with commodity money, such as the fact that it can be cumbersome to use, its value is dependent on its purity, and costs are incurred in certifying its purity and weight.

All of the Following Are Problems Associated with Commodity Money