Final answer:
The use of general-purpose money was formalized in agricultural states through various economic and political factors, leading to the adoption of fiat money.
Step-by-step explanation:
The use of general-purpose money became formalized in agricultural states through various economic and political factors. In agricultural societies, money was needed for transactions related to farming and trade. As economies grew, the use of commodity monies became cumbersome, leading to the adoption of fiat money. This type of money, declared by a government to be legal tender, provided a more convenient and widely accepted medium of exchange.