An example of commodity money is

Step 1: Analyze the question The question asks which option is an example of commodity money.

Step 2: Explain the concept Commodity money is money that has intrinsic value, meaning the material it is made from is valuable in its own right, apart from its use as money. Examples include gold, silver, cowries, salt, and cattle.

This differs from:

• Fiat money: money that has value only because the government declares it legal tender (e.g. naira notes and coins). The paper itself is worth almost nothing.
• Credit or bank money: claims on money held in banks (e.g. cheques, electronic transfers, mobile money).

Step 3: Evaluate each option

• A. Currency note: This is fiat money. The paper has no real value of its own, so it is not commodity money.
• B. Mobile money: This is electronic or digital money, a claim on funds held with a provider. It is not a physical commodity.
• C. Cheques: A cheque is a written order to a bank to pay money. It is a credit instrument, not commodity money.
• D. Silver: This is a precious metal with its own value, and it has been used as money for centuries. It is commodity money.

Step 4: Answer The correct option is **D.

Step 5: Exam tip Ask yourself: "If it stopped being money, would it still be worth something?" Silver, gold, and cowries would, so they are commodity money. Paper notes, cheques, and digital balances would not, so they are fiat or credit money.