9 Which of the Following Could Not Be Commodity Money

1 Problems with the use of commodity money include all of the following except. A Van Gogh painting is not money.

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In economic terms commodity money has what is known as an intrinsic value.

. B reduces the money supply since credit cards act like money. Which of the following is not a purpose or function of money. Q13 Tom uses a credit card to purchase a new pair of jeans.

It is highly illiquid but could eventually be converted to money. D None of the above. It is not just a token or representative of monetary value like banknotes.

Generally a single item that would be accepted in exchange for other goods. Commodity money is the type of money that is made of precious metals or commodities that have intrinsic value. If the car is at constant speed then there is no acceleration.

Not a good quality of money a Homogeneity b Portability c Cognizability d Changing the value of money Answer. Both commodity money and fiat money has its own intrinsic value. Any other form of commodity money was not in use as it would have hurt the system of business on the road which was.

Its worth remains intact even after it is melted. This means that it has a value outside of its use as money. This money has a common value and can be easily divided.

A it is expensive to produce. Phase 4 Intellipath What is Money Which of the following functions of money allows it to hold onto value so that it can be used for some future purpose. C would probably lower the amount in M2 but would probably not affect M1.

Commodity money has its own intrinsic value. Which of the following most accurately explain why commodity money has value. Calculate the average speed.

1 Which of the following is not a form of commodity money. B money that has a value other than as a currency. Page 5 less money.

Gold and silver coins are the perfect example of commodity money. When we talk about commodity money we are referring to that money that the value is taken from the commodity which it is made. It may however serve as a store of value.

It is neither a medium of exchange nor a unit of account. There is simply no evidence to indicate that tobacco ever played a. Today fiat money is more common than commodity money.

Gold as a commodity money fiat money currency and deposit money In which of the following economies are goods and services traded directly for other goods and services. The following items determine your preference for a concert ticket. It is a convenient barter commodity for small-scale transactions and was never used for more than this.

In addition it does not serve as a unit of account. A car travels 350 mph north for 100 hour then 400 mph east for 00500 hour and finally 500 mph northeast for 200 hours. A store of value.

C money that must be backed by gold. See 1974 Amendment note below. D it carries a high opportunity cost because the commodity could not be diverted from other uses.

That same day the trader learns that effective the following Monday he is going to need to maintain a minimum margin account balance of 21600 and his initial margin balance could rise to 24600. Trust in Commodity Money. So it mostly consists of things that have value in themselves and at the same time have value in their use as money.

B All of these. B there is an opportunity of fraud in the production of commodity money. 1 Problems with the use of commodity money include all of the following except A it is expensive to produce.

Its worth as a commodity may be greater than its worth as money ensuring that it ceases to function. Therefore anything that has an alternate use could be considered a commodity form of money. Not a metallic money a silver.

D Changing the value of money. Dollar and the Euro are both forms of fiat money. Where can one find.

Band that is playing date of the concert price of the ticket and friends that are going. A key feature of commodity money is that the value is directly perceived by its users who recognize the utility or beauty of the tokens as goods in themselves. A money that a government has required to be accepted in settlement of debts.

C bits could be clipped off coins and melted down without detection. Not a standard of deferred payment a Paper money b Commodity money c Bills of exchange d Demand drafts Answer. C bits could be clipped off coins and melted down without detection.

Commodity money has become a medium exchange. Neither fiat money not commodity money has its own intrinsic value. Not an ideal money-commodity.

Commodity Money Photo Courtesy. On silk road during the medieval period Silver from the Chinese empires and Gold minted at the Byzantine empire were exclusively used for trade between all participating nations as we know from the coinage of the period. 2 Legal tender is.

It lacks durability and does not have the essential property of concentrating high value in small volume-to mention two major objections. B using a form. The intrinsic value of commodity is a crucial part of building its trust.

It serves as a store of value. An agrarian society could use cows as commodity money because having a reliable farm helper and food source has value in that society. Gold is not money because it is not used as a medium of exchange.

102546 4029B which directed amendment of first sentence by striking the Secretary of Agriculture or could not be executed because of amendment by Pub. QUESTION 9 Which of the following is correct. Which of the following is one of the major defects of commodity money.

Commodity money is a good that can be used as a medium of exchange or for some other purpose. D it carries a high opportunity cost because the commodity could not be diverted from other uses. A using money to buy his jeans since credit cards are money.

Commodity money is to be distinguished from representative money which is a certificate or token which can be exchanged for the underlying commodity but only by a formal process. B there is an opportunity of fraud in the production of commodity money.

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