Question

Commodity money is:

a. money with intrinsic value.
b. receipts created in international trade that are used as a medium of exchange. c. the principal type of money in use today.
d. backed by gold.

Answer 1

Answer:

Money with intrinsic value.

Explanation:

Commodity money is a money which posses intrinsic value of of its own. It value depend on the commodity of which it is made of. This has been used as medium of exchange, it include Gold, silver, copper, cocoa beans, barley, etc. It is opposite to the fiat money, which is intrinsically useless. Value of commodity money is independent of government control.