An instrument used in lieu of legal tender is known as?

A. Token money
B. commodity money
C. fiat money
D. representative

Correct Answer:

Option B – commodity money

Explanation

Money is a type of asset in an economy that is used to buy goods and services from other people. A commodity is a physical item that is interchangeable with another item of the same type or value.

This is the use of specific commodity as a form of money. Its value as a piece of metal is the same with its value as a piece of money.