What characteristic defines commodity money?

Show Answers

Lacks any inherent worthPossesses inherent valueIs utilized only in Western European and North American economiesServes as backing reserves for fiat currency

Explanation

Commodity money is distinguished by having intrinsic value, meaning the material itself has worth. This contrasts with fiat money, which does not have inherent value. Options A, C, and D are incorrect because commodity money does have intrinsic value, is not limited to specific regions, and is not used solely as reserves for fiat money.