Ad
related to: commodity money quizlet chemistry 2
Search results
Results From The WOW.Com Content Network
Commodity money is to be distinguished from representative money, which is a certificate or token which can be exchanged for the underlying commodity, but only by a formal process. A key feature of commodity money is that the value is directly perceived by its users, who recognize the utility or beauty of the tokens as goods in themselves.
Polish National Government bond, 1863 Commodities such as gold and other precious metals have historically been good stores of value. The term cash is often used to indicate both currency, which is usually represented by paper money or coins in industrialized countries, [11] and sums deposited and payable almost immediately on order.
The alternative to a commodity money system is fiat money which is defined by a central bank and government law as legal tender even if it has no intrinsic value. Originally fiat money was paper currency or base metal coinage, but in modern economies it mainly exists as data such as bank balances and records of credit or debit card purchases, [3] and the fraction that exists as notes and coins ...
Token money, or token, is a form of money that has a lesser intrinsic value compared to its face value. [1] [2] Token money is anything that is accepted as money, not due to its intrinsic value but instead because of custom or legal enactment. [3] Token money costs less to produce than its face value. [3]
[1] [2] Commodity chemicals are a sub-sector of the chemical industry (other sub sectors are fine chemicals, specialty chemicals, inorganic chemicals, petrochemicals, pharmaceuticals, renewable energy (e.g. biofuels) and materials (e.g. biopolymers)). Commodity chemicals are differentiated primarily by the bulk of their manufacture.
Shell money is a medium of exchange similar to coin money and other forms of commodity money, and was once commonly used in many parts of the world. [1] Shell money usually consisted of whole or partial sea shells , often worked into beads or otherwise shaped.
Metallism is the economic principle that the value of money derives from the purchasing power of the commodity upon which it is based. The currency in a metallist monetary system may be made from the commodity itself (commodity money) or it may use tokens (such as national banknotes) redeemable in that commodity.
A claim on a commodity, for example gold and silver certificates. [1] [2] [3] In this sense it may be called "commodity-backed money". Any type of money that has face value greater than its value as material substance. Used in this sense, most types of fiat money are a type of representative money. [4]