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What is the difference between commodity money and representative money
Wiki User
∙ 9y ago
Wiki User
∙ 12y agoRepresentative money is portable, durable, divisible, and acceptable.
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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 is the difference between fiat money and representative money?
the difference between representative money and fiat money is that?A)representative money can be converted into silveror gold;fiat money cannot.B)representative money is worth more per dollar than fiat money; which is actually worthless.C)fiat money is counted in coins; representative money is counted in paper.D)fiat money is mre traditional than representative money,which is a newer concept. :)
How the commodity broker earns online?
Most of the commodity brokers get paid on commission basis. So, when you as a client place a trade, they get paid a some percentage of the commission from the amount. Hope you will find it useful. Or visit http://goo.gl/c1Nl6 for more information.
Why is forex useful?
Forex is the only way to get more money.
Why did people invent coins and paper money?
The first paper money was made in China. It could be burned at funerals and other important times to send wealth to one's ancestors. It is now made as it is less expensive to produce at the mint and more portable for the user than coinage would be.
Which market is more risky Equity or Commodity?
I feel Equity market is more risky the reason is one"s investments will depreciate because of stock market dynamics causing one to lose money . compared to commodity market the money lost here will be more . so of the factors that make the market more risky are tax distortions , market failure expansion and implied volatility .
Where can one find out more on commodity futures options?
If you want to find out more information about commodity futures options then you can go to the website Commodity World which is a free site where you can do research.
How does price of commodity influence supply?
It's actually the other way around: the supply of a commodity influences its price, in that the more of the commodity you have, supposedly the lower the price to get people to buy more of it.
When an economy is operating under conditions of full employment why will the production of more of commodity A mean the production of less of commodity B?
It will occur because of the movement of workers from the production of one commodity to the other. Full employment means that there are no unemployed workers available. In this case, the hypothetical economy is a closed system. No new workers, materials, production facilities, money or markets can be introduced. Because it is operating under conditions of full employment, all the workers, raw materials, factories, money and customers are being fully utilized. Therefore, if we decide we need more Commodity A we have to steal workers, materials and production space from that allocated to Commodity B.
Disadvantages of Commodity money?
There are two. One is, there can never be more money than there are commodities to cover it. If you decide that one dollar is equal to one gram of gold, and there are only 1 million grams of gold in the world, there can only ever be 1 million dollars. The other is, if you can find more of the commodity you can destabilize the financial system. Money gains worth through scarcity. If gold is 1 gram = $1, and you find a vein of gold with 1 million grams of gold in it, you have just made all the money in the world half as desirable as it was before.
Will consumer buy more when price of a commodity falls?
according to law of demand consumer buy more of the commodity when price decreases
Where can one learn more on commodity brokerage?
One can learn more on commodity brokerage from Black Rock Commodities Investor Pack. A commodity brokerage can be a business or individual who can charge commission from clients for carrying out orders to sell or buy commodity contracts on their behalf.
