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)

Question

Responses

representative money.
representative money.

commodity money.
commodity money.

currency.
currency.

fiat money.

Answer 1

In this hypothetical economy, where rice functions as money and is also valued as a consumer good, rice is said to be commodity money.

Commodity money is a type of money that has intrinsic value because it is made of a material that has value; in this case, rice serves both as a medium of exchange and a consumable good.