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:

China's Agricultural Land

Refers to the area within China designated for farming activities, playing a critical role in the country's food security and economic development.

Private Sector

The part of an economy that is run by individuals and companies for profit, as opposed to being controlled by the government.

Market Oriented

An economic system or approach that prioritizes supply and demand as the primary forces in the market, promoting free competition among businesses.

Pure Capitalist Economy

An economic system characterized by private ownership of the means of production and the absence of government intervention in the market.