Money that has no intrinsic value and is created by a government decree is called
A) barter money.
B) commodity money.
C) fiat money.
D) asset money.

Question

Quizplus · Accepted Answer

Fiat money has no intrinsic value and is not backed by a physical commodity like gold or silver. Its value is based solely on the government's decree or fiat that it has value as a medium of exchange. Barter money involves the direct exchange of goods and services without the use of a specific currency. Commodity money has intrinsic value because it is made of a valuable commodity like gold or silver. Asset money refers to a wide range of financial instruments that are used as a store of value or for investment purposes, such as stocks, bonds, and derivatives.

Money That Has No Intrinsic Value and Is Created by a Government