What is an example of commodity money?
Commodity money refers to objects that have value and can be used as money. Examples would be gold, silver, jewelry, or any metal that has value. Anything that has value to one person can be used as commodity money. If someone is in need of coffee beans and you have them but they don't, they may be willing to barter goods in exchange for coffee beans. In this case, coffee beans would be used as commodity money. ...
Asked in Business & Finance
Which of the following most accurately explain why commodity money has value?
Commodity money is a good that can be used as a medium of exchange or for some other purpose. ...
Asked in Commodities
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 ...
What are the Four main disadvantages of commodity money?
some disadvantages of commodity money are its not portable, durable, uniform or divisible, it usually works in small economies ...
What is the difference between commodity money and representative money?
What is the difference between commodity money and representative money
Asked in Colonial America
Was wheat used as commodity money by the American colonies?
where was salt used as commodity money
Asked in Business & Finance
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. ...
Asked in Money Management
Why does Fiat money differ from commodity money?
Fiat money differs from commodity money because it is a more convenient form of money. It is easier to carry around paper money that it is to carry around gold or silver or other commodities. Fiat money is a promise to pay in the future while commodity money derives its value from the commodity of which it is made. Fiat money has value because the government declares that it has value. Fiat money only has value as a medium of exchange. ...
What best explains the difference between fiat money and commodity money?
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. ...
What statements accurately describes the relationship between commodity money and fiat money?
Commodity money has value in itself while fiat money has value only because it is given value ...
Asked in The Difference Between
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...
Difference between money and other commodities?
Money:- A value that serves as a generally accepted medium of exchange. Money have indirect utility. Money cannot be pinpointed or specified. Commodity:- A reasonable homogeneous good or material that can bought and sold freely. The commodity have direct utility. The commodity can be pinpointed or specified. ...
Asked in Investing and Financial Markets, Banking, Commodities, Money Management, Commercial Bank and Checking Accounts, Swift Codes and Routing Numbers
Is commodity bank commercial bank?
No, it is not. A commercial bank uses deposits and loans to create money out of thin air. A commodity bank uses real money and cannot create money from nothing. ...
Asked in Economics, Colonial America, Commodities
What was used as commodity money by the American colonies?
The commodity money used by the American colonies was the based on what they used in Britain. Pounds, pence's, the shilling, silver, and even gold. ...
Asked in Economics
Factors affecting demand for a commodity?
price of a commodity, the higher the prices, the lower the demand if there is not a equiblirum condition between demand and supply then it affect commodity demand , inflation and income, and monopoly in some commodity in some area is also affect demand of commodity ...