Question

Sarah is shopping for groceries at the local supermarket. She paid for her groceries using a $100 recently issued by the US government. What type of money did Sarah use for this transaction.

Answer 1

Answer:

Commodity money

Explanation:

Money

This is simply defines as anything that is used by humans as a means exchange. This means of exchange is usually accepted as payment

3 basic functions of money

1. Unit of account used in measuring the value of things

2. Store of value covers item that has value over time

3. Medium of exchange termed as means of payment

 Commodity money

This is a type of money that has its own separate value apart from its use as money. Common example is cigarettes in prison.