Question

Which of these scenarios involves commodity money?

A. A girl writes a check to her friend for a stack of valuable comic books.
B. A boy starts a lemonade stand and sells each drink for twenty-five cents.
C. A woman offers her neighbor a US silver dollar in exchange for a bicycle.
D. A man buys some T-shirts and pays with a US fifty-dollar bill.

(Answer: C)

Answer 1

Commodity money is money whose value comes from a commodity of which it is made. Commodity money consists of objects that have value in themselves (intrinsic value) as well as value in their use as money so i probably would try c

Answer 2

The correct answer is C) A woman offers her neighbor a US silver dollar in exchange for a bicycle.

Commodity Money is a commodity that has an intrinsic value because of the material it was made. On this example you can see that the woman offered her neighbor a US SILVER DOLLAR, this means this is not just “normal money” it has a different value because it is made with silver, because of this it is considered a commodity money.