Today, most governments issue money that is backed by nothing more than a promise to honor it for all debts public and private. Such currency is called ________.

Question

Quizplus · Accepted Answer

Fiat money is currency that is not backed by a physical commodity, such as gold or silver, but is instead backed by a government's guarantee to accept it for all debts. A) Gold standard currency refers to money that is backed by a physical commodity, specifically gold. C) Warehouse cash and D) Deposit receipt are not commonly used terms in reference to currency.

Today, Most Governments Issue Money That Is Backed by Nothing