Full-bodied money refers to money whose money value and commodity value are equal in the market.



Full-bodied money is a concept that refers to money whose value as a medium of exchange is equal to its value as a commodity. In other words, the money itself has intrinsic value equal to its face value. This means that the commodity value of the money is equal to its money value when exchanged in the market.



There are several factors that determine whether a particular form of money can be considered full-bodied money. These factors include:

- Market acceptance: Full-bodied money must be widely accepted in the market as a medium of exchange. It should be recognized and used as a form of payment by the general population.

- Intrinsic value: Full-bodied money must have intrinsic value, meaning that the material used to make the money itself has value. For example, gold or silver coins can be considered full-bodied money because the metal itself has value.

- Government backing: Full-bodied money can be declared as such by the government, but this is not a requirement. Government backing can provide additional assurance and confidence in the value of the money.

- Equal value: The money value and commodity value of full-bodied money must be equal in the market. This means that the value of the money when used as a medium of exchange is the same as its value when used as a commodity.



An example of full-bodied money is gold coins. Gold has intrinsic value because it is a precious metal with various uses and limited supply. Gold coins are widely accepted in the market as a medium of exchange and their value as a commodity is equal to their face value. Therefore, gold coins can be considered full-bodied money.

Conclusion:

Full-bodied money refers to money that has equal value as a medium of exchange and as a commodity. It is widely accepted in the market and has intrinsic value. While government backing can provide additional assurance, it is not a requirement for full-bodied money.