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Question
Money made of something of value is known as ________.
Money made of something of value is known as ________.
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Solution
The correct option is A commodity money
Commodity
money is that money whose face value is equal to its commodity
value. In other words, the face value of the money is equal to the value of commodity used to make it. It is also known as full-bodied
money. For example- when silver and copper coins were used as common medium of exchange the value of money was equal to the commodity value of these coins.
Commodity money is that money whose face value is equal to its commodity value. In other words, the face value of the money is equal to the value of commodity used to make it. It is also known as full-bodied money. For example- when silver and copper coins were used as common medium of exchange the value of money was equal to the commodity value of these coins.
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