Commodity Backed Money is where the quantity of money is backed with a commodity, which it can be traded in with at request. The money supply cannot increase past the worth of commodity the country holds. The Gold Standard was the best example. Measuring Value A wide variety of possible commodities could be used to measure value. We could, for instance, use wheat (or rice), probably the most universally needed commodities for human survival. But any single commodity will have the disadvantage