What is a major danger of fiat money?
A) Its value may not be stable if the government prints a lot more money.
B) There is often not enough of a resource to use it for money.
C) The value of fiat currency may stay locked in place and stifle the economy.
D) It can be costly to exchange money for the commodity that backs it.

Question

Quizplus · Accepted Answer

One major danger of fiat money is that its value may not be stable if the government prints a lot more money. This can lead to inflation and decrease the purchasing power of the currency.

What Is a Major Danger of Fiat Money