Money that some authority, generally a government, has ordered to be accepted as a medium of exchange is called _______ money.
A) fiat
B) intrinsic
C) commodity
D) debt

Question

Quizplus · Accepted Answer

Fiat money is money that is declared by a government to be legal tender, but that is not backed by a physical commodity, such as gold or silver. Its value is based solely on the faith and credit of the issuing authority.

Money That Some Authority, Generally a Government, Has Ordered to Be