Commodity-backed money is:
A)any form of money that can be legally exchanged into a fixed amount of an underlying commodity.
B)money created by rule.
C)money used for the exchange of large commodities.
D)None of these is true.

Question

Quizplus · Accepted Answer

Commodity-backed money is a type of currency that can be legally converted into a fixed amount of an underlying commodity, such as gold or silver. This system was common in the past, but most countries now use fiat money, which is not backed by a physical commodity.

Commodity-Backed Money Is