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

currency.
currency.

commodity money.
commodity money.

fiat money.
fiat money.

representative money.

Answer 1

In this scenario, rice functions as both a medium of exchange (money) and a consumer good. Therefore, it is best classified as **commodity money**. Commodity money is a type of money that has intrinsic value, as it has value in itself (as a consumer good) in addition to its use as a medium of exchange.