Which of the following is NOT a limited relevance of commodity money:

Explanation

This question is asking which of the given options is NOT a limited relevance of commodity money. Commodity money is any physical item used as a medium of exchange, such as gold or silver. The options given are A, B, C, and D. Option A says that costliness of transaction is a limited relevance of commodity money. Option B states that it limits market size. Option C claims that it hampers specialization. Option D, which is the correct answer, says that it is held as a store of wealth.

Commodity money has limited relevance due to its characteristics. One of these characteristics is that it is costly to transact with, as stated in option A. For example, if gold is used as a medium of exchange, it would be difficult to make small transactions because gold is valuable and small amounts of it are worth a lot of money.

Option B states that commodity money limits market size. This is because not everyone may have access to the commodity being used as money, and this could limit trade and commerce.

Option C states that commodity money hampers specialization. This is because people may have to spend time and resources to obtain the commodity used as money instead of specializing in their area of expertise.

Option D, which is the correct answer, states that commodity money is held as a store of wealth. This means that people may hoard the commodity instead of using it as a medium of exchange, which could limit its availability in the market and affect trade and commerce.

In summary, the correct answer to this question is option D, as it is not a limited relevance of commodity money.