Question

At first, it might seem that valuable commodities, such as cattle or lead bars, might be good forms of money. What makes paper money preferable to these alternatives

Answer 1

Answer:

This questions is incomplete, the options are missing. The options are the following:

a) It is less likely to be stolen.

b) It has more intrinsic value than cattle or lead bars.

c) It is divisible (unlike cattle) and easily portable (unlike lead bars).

And the correct answer is the option C: It is divisible (unlike cattle) and easily portable (unlike lead bars).

Explanation:

To begin with, the current paper money that is used nowadays has a lot of benefits in comparison with those other material valuable commodities due to the fact of all the characteristics that the paper money has. In addition, this currency is much more divisible than those other due to the fact that a one hundred dollar paper could turn into two fifty dollars papers. Besides, the paper money is much more portable than those others and the person could even carry more value in paper money than the same value but with those other commodities. And finally, the paper money is much more liquid than those other goods, so that indicates that is extremely easy to exchange for other thing, while the other options are not.