Question
Which of these scenarios involves commodity money?
A: A girl writes a check to her friend for a stack of valuable comic books.
B: A boy starts a lemonade stand and sells each drink for twenty-five cents.
C: A woman offers her neighbor a US silver dollar in exchange for a bicycle.
D: A man buys some T-shirts and pays with a US fifty-dollar bill.
A: A girl writes a check to her friend for a stack of valuable comic books.
B: A boy starts a lemonade stand and sells each drink for twenty-five cents.
C: A woman offers her neighbor a US silver dollar in exchange for a bicycle.
D: A man buys some T-shirts and pays with a US fifty-dollar bill.
Answers
GPT-4o mini
Commodity money refers to money that has intrinsic value, meaning that the money itself is made of a material that has value (like gold, silver, or other goods).
In the scenarios you provided, the one that involves commodity money is:
C: A woman offers her neighbor a US silver dollar in exchange for a bicycle.
This is because a silver dollar has intrinsic value based on the silver it contains. The other scenarios involve different forms of money or payments that do not have intrinsic value in themselves.
In the scenarios you provided, the one that involves commodity money is:
C: A woman offers her neighbor a US silver dollar in exchange for a bicycle.
This is because a silver dollar has intrinsic value based on the silver it contains. The other scenarios involve different forms of money or payments that do not have intrinsic value in themselves.