Question

Which of the following most accurately explains why commodity money has

value?
A. Commodity money must be a precious metal that people will value because of its beauty and usefulness.
B. Commodity money only has value because it functions as an efficient medium of exchange.
C. Commodity money only has value because the government declares it has value.
D. Commodity money is a good that can be used as a medium of exchange or for some other purpose.

Answer 1

D. Commodity money is a good that can be used as a medium of exchange or for some other purpose.

Step-by-step explanation:

Quiz Verified

Answer 2

The correct answer is (D)

Step-by-step explanation:

The most and critical use of money is that it can be used as a medium of exchange. Likewise, the main reason why money is considered as an essential factor is that it can be traded for any good or service. So, commodity money is a good that can be used as a medium of exchange or for some other purpose.