Question

In Medieval Times, peasants used to pay their taxes using grain (like barley, oats, or wheat). Grain is considered what form of money?

Select one:

a. Representative Money

b. Commodity Money

c. Token Money

d. Fiat Money

e. Electronic Money

Answer 1

Representative Money is a medium of exchange whose face value is more than its intrinsic value Eg: Paper currency

Commodity money is using commodities with their own intrinsic value as a medium fo exchange Eg: Grain, Gold, Silver

Toke Money is the same as representative money whose intrinsic value is far less than its face value

Fiat money is representative money and a legal tender as decreed by the government Eg: $, Rupee, Euro, Pound etc

Electronic money is the money stored electronically in a technical device or with institutions such as banks and can be used as a medium of exchange

Ans: b. Commodity Money