Simply commodity money can be termed as the money that can be used for monetary purpose & on the other hand it can be used for non-monetary purpose. In fact commodity money are commodities of precious types, such as-gold, yarn, corn, silver etc. In barter economy commodity money was used for the same purpose for which reason we use money today. However to note that, commodity its could had been used as commodities.
In today’s monetary economic society there are still commodity money such as coin those central government issues. These commodities perform the basic functions of money & at the same time can be used as –commodity.
However commodity money of the barter society had the defects of non-portability of the problem of portability.