Commodity money had an alternative use as an economic good, while fiat money did not.
What type of money has an alternative use as an economic good such as gunpowder flour or corn?
Econ Test Vocab 5
| Question | Answer |
|---|---|
| Commodity Money | Money that has an alternative use as an economic good; gunpowder, flour, corn, etc. |
| In-convertible fiat Money | A monetary standard under which the fiat money supply cannot be converted into gold or silver by its citizens. |
What is money only good for trade called?
What Is Barter? Barter is an act of trading goods or services between two or more parties without the use of money —or a monetary medium, such as a credit card. In essence, bartering involves the provision of one good or service by one party in return for another good or service from another party.
Which of the following is not an example of how a bank can make money?
Which of the following is NOT an example of how a bank can make money? Loaning money.
Why does barter system was abandoned?
In such a case, barter system involves wastage of time and efforts. (b) Common Measure of Value: Constitutes one of the important reasons for the failure of the barter system. In barter system, there is no common measure of value; therefore, it is difficult to find out any fixed ratio for exchanging goods and services.
Is paper money a specie?
Specie payment, the redemption of U.S. paper money by banks or the Treasury in metallic (usually gold) coin.
What are the types of money in economics?
Money comes in three forms: commodity money, fiat money, and fiduciary money. Most modern monetary systems are based on fiat money.
What is the money that has an alternative use called?
Complementary currency
A complementary currency is a currency or medium of exchange that is not necessarily a national currency, but that is thought of as supplementing or complementing national currencies.
What is money that has an alternative use called?
A complementary currency is a currency or medium of exchange that is not necessarily a national currency, but that is thought of as supplementing or complementing national currencies.
