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Question : Full-bodied money means:

Option 1: Money Value = Commodity Value

Option 2: Money Value > Commodity Value

Option 3: Money Value < Commodity Value

 

Option 4: Money Value ≠ Commodity Value


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Money Value = Commodity Value


Solution : The correct answer is (a) Money Value = Commodity Value

Full-bodied money refers to a type of money where the value of the currency is directly equivalent to the value of the underlying commodity that it represents or is backed by. In this system, the money value is equal to the commodity value.

Option (a) correctly states that money value is equal to commodity value, which is the defining characteristic of full-bodied money. The value of the currency is directly tied to the intrinsic value of the commodity, such as gold or silver, backing it.

Therefore, the correct answer is Money Value = Commodity Value.

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