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JAMB Economics 2012 Question 30

Question 30

Money and Inflation

The money that commands a higher market value than its face value is called

  1. A.paper money
  2. B.standard money
  3. C.commodity money
  4. D.fiat money.
Show the answer and explanation

Answer: C (commodity money)

Explanation

Commodity money is a good that has value in itself, so it can be worth more on the market than its value as money. Paper money is worth almost nothing as paper.