Question

When colonists in Virginia used tobacco as money, their money Select one: a. had no store of value. b. was fiat money. c. had no intrinsic value. d. was commodity money.

Answer 1

Answer:

d. was commodity money.

Explanation:

• Commodity money is a specific product or commodity in its physical form.
• In the beginning, this function was most often held by livestock, and over time, goods that made commodity money lose their useful value and serve exclusively for exchange.
• It becomes the most easily traded commodity and over time the number of those commodities narrows down to one good that serves as the general equivalent through which the value of the others, namely precious metals, is expressed.
• They were initially used for both monetary and non-monetary purposes because they have their intrinsic (usable) value.