Problems with the Use of Commodity Money Include All of the Following

question 6

Multiple Choice

Problems with the use of commodity money include all of the following EXCEPT

• A)there is an opportunity of fraud in the production of commodity money.
• B)there are several good substitutes.
• C)it carries a high opportunity cost because the commodity could not be diverted from other uses.
• D)it is expensive to produce.
• E)bits could be clipped off coins and melted down without detection.

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Definitions:

Performance

The effectiveness with which a company, individual, or system operates to meet its objectives or benchmarks.

Specification Methods

Techniques used to describe the requirements, standards, and quality measures for materials, products, or services.

Purchasing by Specification

Involves acquiring goods or services based on detailed descriptions of their requirements and characteristics, ensuring they meet specified standards and performance criteria.

Supplier Expertise

The specialized knowledge or skills held by a supplier, making them a preferred choice for delivering specific goods or services.