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Cowrie shells used for centuries as a medium of exchange are an example of:
ACheckable deposits
BBank reserves
CCommodity money
DFiat money only
Answer & Solution
Correct answer: C. Commodity money
1. Money has taken many physical forms.
2. Money has taken a wide variety of forms in different cultures.
3. For centuries people used the durable cowrie shell as a medium of exchange.
4. Items used as commodity money also have a value from use as something other than money.
5. A shell is such an item, so it is commodity money.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 13 'Money and Banking'_
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