17
QuizMultiple Choice

Money

Question 17 • * HSA 26-27 Economics

What gives commodity money its value?

Answer
A
a government’s guarantee of its value
B
the type of material with which it is made
C
its rate of exchange in other countries
D
the ability to trade it for a valuable good

Explanation

Commodity money has value because it is made from a material that is valuable in itself, such as gold or silver. Its value comes from the type of material, rather than a government guarantee or the promise to exchange it for something else.

AI-written and checked against the verified answer.

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