Question

Consider a hypothetical economy in which rice functions as money. In addition to being valued as money, rice is valued as a consumer good. In this scenario, rice is said to be(1 point)
Responses

fiat money.
fiat money.

currency.
currency.

commodity money.
commodity money.

representative money.

Answer 1

In this hypothetical economy where rice functions as money and is also valued as a consumer good, rice is best described as **commodity money**. Commodity money is a type of money that has intrinsic value, meaning it holds value in its own right (in this case, as a consumer good) in addition to its function as a medium of exchange.