Which of the following is not a problem of ‘commodity money’ when it acts as a medium of exchange?

Expansion of trade

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Improper standardisation

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Difficult to store

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Indivisibility

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Solution

The correct option is A
Expansion of trade

Expansion of trade is not a problem created by the use of commodity money when it acts as a medium of exchange. However, there are various problems such as improper standardisation, indivisibility, difficulty in storing, etc., which make this form of money an unsuitable medium of exchange.

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