what gives commodity money its value?

Quesiton : what gives commodity money its value?

Answer: the type of material with which it is made

what gives commodity money its value? How can the answer be improved? What are some examples of commodity money? - Quora Which Single Piece of Currency is Worth the Most? Money Market Account - Sharper Insight. Smarter Investing. What gives commodity money its value Ask for details ; Follow Report by Boogerbutt7788 05/23/2018 Log in to add a comment Answer Verified by Expert. Answered by fatimakincsem +2. jd3sp4o0y and 2 more users found this answer helpful The answer can include the following points: Scarcity is one of the major factors that give money its value ... Its changing value relative to other currencies. ... People could not charge as many different prices for goods. What gives commodity money its value ? The type of material with which it is made. OTHER SETS BY THIS CREATOR. 9 terms. Macroeconomics (Unit test review) 6 terms. Banking. 4 terms. a government’s guarantee of its value. the type of material with which it is made. its rate of exchange in other countries. the ability to trade it for a valuable good. The term “liquidity” refers to. how quickly money can be exchanged. the true monetary value of an investment. … Wed Feb 27 2008 00:00:00 GMT+0530 (IST) · The more scarce a commodity is the more value a society puts on to it. Money is a commodity and what gives money or any other commodity its value is scarcity . it used to be gold. But now it is pure trust in the government. thats why unstable government usually have weak currencies. Definition of Commodity Money . Commodity money is a commodity that has intrinsic value . Intrinsic value means that the commodity has value even if it is not used as money . In times of economic turmoil such as severe economic depressions or hyperinflation people sometimes turn to commodity money instead of the money authorized by their governments. Types of Money . An economist would tall you that what gives money its value depends on what type of money it is: commodity money representative money or fiat money . Commodity money has a value or use aside from its use as money . During the late eighteenth century farmers in the Pennsylvania backcountry used whiskey for money . Commodity money is that type of money that possesses intrinsic value on its own independent of any governing body . This means the money itself contains its own worth. It is not merely a token or representative of financial value as with bank notes or numbers on a computer screen and in a ledger. Commodity money . Commodity money is money whose value comes from a commodity of which it is made. Commodity money consists of objects that have value in themselves ( intrinsic value ) as well as value in their use as money . Example of commodities that have been used as mediums of exchange include gold silver copper salt ... Thu Aug 16 2018 00:00:00 GMT+0530 (IST) · The value of any good is determined by its supply and demand and the supply and demand for other goods in the economy. A price for any good is the amount of money it takes to get that good. Inflation occurs when the price of goods increases—in other words when money becomes less valuable relative to those other goods. Fiat money is a promise to pay in the future while commodity money derives its value from the commodity of … which it is made. Fiat money has value because the government declares that it has value .