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What best explains the difference between fiat money and commodity money?
Wiki User
∙ 12y ago
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.
Vern Kovacek
Wiki User
∙ 12y agoCommodity 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.
Delilah Lunah
Amelia Bingham
Commodity money can be used for some other purpose while fiat money can only be used as a medium of exchange
Mariha Puerto
yupo
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Why is representative money more useful than commodity money?
What is the difference between commodity money and representative money
4 similarities between money & commodity?
What is the difference between money and commodity? Commodity money is a sort of money that is considered as a present good. Whereas, fiat money is a future obligation as it is simply a promise to pay in the future. Payment is never made when it comes to fiat money, instead it is only discharged. But commodity money, on the other hand, completes the transaction.
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.
What explains the difference between fiat money and commodity?
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.
Difference between money and commodity?
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.
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.
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.
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
Which 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
What is the difference between money and and Commodity?
Money is what people use as the predominant item in exchange for everything else in the market. Commodities on the other hand can be useful by themselves and therefore usually do not qualify as a good type of money with the notable exception being gold and perhaps silver.
