Question

Commodity money has value based on:

Answer 1

Answer:

A. the type of material that was used to make it.

Explanation:

Money can be defined as any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.

Simply stated, money is an asset used for the purchase of goods and services.

Commodity money simply refers to money that derives its value from the commodity with which it is created from.

Basically, the type of material with which money is made is what gives commodity money its value because it is based on the perception of the buyer and seller of goods and services.

This ultimately implies that, commodity money has value based on the type of material that was used to make it. Some examples of commodity money are gold, diamonds, silver, cowry, cocoa, copper, and other valuable resources.