What characterizes commodity money?
A) It is money that is backed by gold.
B) It is the principal type of money in use today.
C) It is money with intrinsic value.
D) It is comprised of receipts created in international trade that are used as a medium of exchange.

Question

Quizplus · Accepted Answer

Commodity money is money that has intrinsic value, meaning it holds value in and of itself, such as gold or silver. Choice A is incorrect because not all commodity money is backed by gold. Choice B is incorrect because commodity money is not the principal type of money in use today, as most countries use fiat money. Choice D is incorrect because commodity money is not comprised of receipts created in international trade.

What Characterizes Commodity Money