Explanation:
Hi! The metals that are used as a hedge against inflation are gold, silver, platinum, palladium, rhodium. History dictates whether these metals can be used against inflation, and aluminum does not fall on that list.
That's it!
Aluminum is not typically used as a hedge against inflation as opposed to precious metals like silver, platinum, and palladium. These metals have historical precedent as commodity money and have been associated with commodity-backed currencies. The option (C) is correct.
Aluminum is not typically considered a hedge against inflation. This is because aluminum is more abundant and does not hold the same scarcity value as the precious metals listed, thus it tends to be more sensitive to economic cycles and industrial demand rather than acting as a store of value.
Precious metals like gold and silver have historically played the role of commodity money, being used as a medium of exchange, a store of value, and a unit of account. The concept of commodity-backed currencies illustrates how these metals have been integral to the monetary systems of the past, with paper currency at times representing a certain amount of physical commodity held in reserve. Therefore, option (C) is correct.
