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Commodity money can be used for some other purpose while Fiat money can only be used as a medium of exchange.
Commodity (sometimes referred to as "Hard") money is currency which is fully backed by a specie (usually a precious metal i.e. Gold, Silver, or Platinum). Fiat money is backed only by a promise of the issuing government to honor the value of the bill or coin.
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Which of the most accurately explains why commodity money has value?
Commodity money is a good that can be used as a medium of exchange or for some other purpose. Apex
Which is most accurately explains why commodity money has value?
A commodity is a good that is worth money, there is no such thing as "commodity money". So if you have a good that was purchased from a vendor that is by definition a commodity, its value is whatever you paid for it, my suggestion is a mark up and that is its profit.
Ask us of the following most accurately explains why fiat money differs from commodity money?
Fiat money has value bc the gov. declares that it has value.
What is the difference between representative money and commodity money?
A) Commodity money consists of objects used as money that contains their own value, but representative money is a specific group of the commodity objects. B) Commodity money consists of objects that have value in and of themselves, but representative money makes use of objects because the holder can exchange them for something else of value. C) Representative money allows objects to be exchanged for something else, but commodity money has value because the government decreed it is an acceptable means to pay debts. D) Representative money consists of objects that have value in and of themselves, but commodity money makes use of objects because the holder can exchange them for something else of value The answer is B.
Which of the following statements accurately describes the relationship between commodity money and flat money?
Commodity money has value in itself while flat money has value only because it is given value
