Money whose value derives entirely from its official status as a means of exchange is known as:

Question

Quizplus · Accepted Answer

Fiat money is money whose value is not backed by a physical commodity, such as gold or silver, but instead derives solely from its status as a means of legal tender. It is essentially a form of currency that has value because a government says it does, and people trust that this value will be maintained. Commodity money and commodity-backed money, on the other hand, derive their value from the intrinsic value of the underlying commodity, such as gold or silver. Bank reserves are deposits held by a bank at a central bank or other financial institution.

Money Whose Value Derives Entirely from Its Official Status as a Means