Fiat money
A) has a high intrinsic value.
B) is decreed by royalty.
C) is acceptable as money because the government has decreed it to be so.
D) is unacceptable as money.

Question

Quizplus · Accepted Answer

Fiat money is money that has no intrinsic value and is only acceptable as a medium of exchange because the government has declared it to be so. Therefore, option C is the correct choice. Options A and D are incorrect as fiat money does not have high intrinsic value nor is it unacceptable as money. Option B is also incorrect as fiat money is not decreed by royalty in modern times.

Fiat Money