In the scenario described, where rice functions as money and is also valued as a consumer good, it is said to be commodity money. This is because commodity money has intrinsic value—the item used as money also has value as a good or service.
Properties of Money Quick Check
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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.
representative money.
representative money.
fiat money.
1 answer
1 answer