Explain the difference between representative and commodity money, and give examples of how each was used along the Silk Road.

Answer:

sample answer/ possible answer- Commodity money refers to items of value that are used as money. The value is sized on by the parties involved in the trade. Some forms of commodity money used on the Silk road were cowry shells, animals, feathers, and beads. Representative money refers to a paper currency that gets its value from a governments promise to exchange it for a certain amount for gold or silver. In China, paper money was first used as a form of representative money in about the ninth century. it’s use was limited on the Silk Road because the money did not have value outside of China.

Explanation:

possible answer/ sample answer on edge 2020

The representative money is referred to as the money that carries no intrinsic value with it. The commodity money is termed as the money that carries an intrinsic or a valid value of money.

Commodity money is a term that refers to precious pieces that are used as money. The parties involved in the trade determine the value.

Cowry shells, animals, feathers, and beads were examples of commodity money used on the Silk Road.

Representative money is a paper currency whose value is derived by a government's commitment to swap it for gold or silver in a specific amount. In China, around the ninth century, paper money was initially utilized as a sort of representational money.

Because the money had little value outside of China, its usage on the Silk Road was limited.

To know more about the types of money, refer to the link below:

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