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# Metal Currency

## Definition

The use of metals, particularly gold and silver, as the preferred medium of exchange due to their durability, divisibility without loss of value, and ability to be precisely proportioned to the value of commodities being exchanged.

## Source Chapter

Book I, Chapter 4

## Context

Smith argues that metals become the universal medium of exchange because they can be stored without deterioration, divided into precise quantities, and recombined without loss, solving the problem of proportional exchange that plagues other commodities like cattle or shells.

## Economic Domain

Exchange

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