Question

1 point
8. Paper money was a substitute for
commodity money.
True
False​

Answer 1

Answer:

False, it was a substitute for metal coins(Silver)

Answer 2

The statement Paper money was a substitute for commodity money is 'False'.

Explanation:

Commodity money served as a medium of exchange after the barter system failed. This type of money came into existence before 'animal money'.

• In the pre-historic period commodities to be used as money were dependent upon climate and culture, for example, animal skin, shells, tusk, and feathers.
• Due to the problem of storage of these commodities metallic money came into existence.
• Hence, metallic money was a substitute for commodity money.
• Paper money was introduced as a substitute for metallic money.