An object that has value in itself as well as value in its use as money is referred to as what kind of money?Multiple choice question.FiatBarterPaperCommodity

Break Down the Problem

1. Identify what type of money has intrinsic value as well as value as a medium of exchange.

Relevant Concepts

2. Understand the definitions of each option:
   • Fiat Money: Currency that has no intrinsic value and is not backed by physical commodities but is established by government decree.
   • Barter: A system of exchange where goods and services are traded directly for other goods and services without using money.
   • Paper Money: Currency made from paper that does not have intrinsic value; it is generally fiat money.
   • Commodity Money: Money that has intrinsic value based on the material from which it is made (e.g., gold, silver, or other precious metals) and can also serve as a medium of exchange.

Analysis and Detail

3. Among the options provided, "Commodity Money" is the only answer that fits both criteria: it has inherent value (because of the material it's made from) and is used as money (medium of exchange).

Verify and Summarize

4. Reassessing the definitions confirms that commodity money fulfills the criteria specified in the question.

Final Answer

The correct answer is Commodity.