Commodity money (商品货币 shāng pǐn huò bì) refers to money in the forms of a physical commodity, which is used as a medium of exchange. The object has intrinsic value on its own as well as for use as money. Examples of commodity money include gold, silver, copper, salt, shells, tea, alcohol, and tobacco. Also see: fiat money (法定货币 fǎ dìnghuò bì), representative money (代用货币 dài yòng huò bì), and money (货币 huò bì).
Part 1: Breakdown of Words
- “Commodity” (商品 shāng pǐn) as in primary commodity (初级商品 chū jí shāng pǐn) and in commodity price (商品价格 shāng pǐn jià gé).
- “Money” (货币 huò bì) derives from:
- In most cases, “money” will be translated to “钱” (qián) in Chinese. But sometimes it will be translated to “货币” (huò bì), for example,” “monetary policy” (货币政策 huò bì zhèng cè), or “fiat money” (法定货币 fǎ dìng huò bì).