Question

State with reasons the following statement is True or False.
Any commodity cannot act as money.

• A. True
• B. False

Answer 1

The correct option is A True

True.

Money refers to a common medium of exchange that is issued under the law of government and acts as a legal tender for the whole country. Therefore, any commodity cannot act as a money. Only the commodity which is issued under the law of government can act as a legal tender i.e. money or common medium of exchange in the whole economy.