All of the Following Are Problems Associated with Commodity Money

question 67

Multiple Choice

All of the following are problems associated with commodity money EXCEPT

• A) it is a cumbersome form of payments system.
• B) commodities tend to have little value in and of themselves.
• C) its value is dependent on its purity.
• D) costs are incurred in certifying the purity and weight of commodity money.

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Definitions:

Equity

The value of an asset after deducting the amount of liabilities or the ownership interest in a company.

Revenues

Sum of income from the primary business activities of a company, which includes sales of its products or services.

Unearned Revenues

Money received by a company for goods or services that have yet to be delivered or performed, considered a liability until earned.

Liabilities

Liabilities represent debts or financial obligations that a company owes to others, which must be settled over time through the transfer of economic benefits.